WASHINGTON, D.C. –The Consumer Financial Protection Bureau Thursday fined M&T Bank $3.1 million for deceptively advertising free checking accounts.
The bureau determined that Buffalo, N.Y.-based M&T lured in consumers with promises of “no strings attached” free checking, without disclosing key eligibility requirements, the agency stated in a release. When consumers failed to meet the requirements, M&T automatically switched them to checking accounts with fees.
M&T will provide $2.9 million in refunds to the approximately 59,000 consumers deceived into paying fees and it will pay a $200,000 penalty for the violations.
“Although M&T promised people free checking, tens of thousands of consumers ended up paying for a product they had thought was free,” said CFPB Director Richard Cordray. “This is an important reminder to all banks and credit unions that they cannot misstate to consumers whether a financial product or service is free. Today we are putting $2.9 million back in the pockets of consumers as a result.”