Regions Financial Corporation

Regions Bank has been subject to multiple enforcement actions for systemic financial misconduct harming consumers and investors. In September 2022, the Consumer Financial Protection Bureau (CFPB) ordered Regions to pay $191 million for illegally charging surprise overdraft fees, a practice known as “authorized positive fee” charging. The CFPB identified the bank as a repeat offender, requiring it to refund at least $141 million to customers and pay a $50 million penalty. This followed a 2016 settlement where Regions paid $52.4 million to resolve allegations it violated the False Claims Act by knowingly originating and underwriting mortgage loans that did not meet federal requirements.

The bank has also faced significant regulatory action for internal control failures. In 2014, the Securities and Exchange Commission charged three former senior managers of Regions Bank with fraud for intentionally misclassifying loans to avoid reporting losses. More recently, in August 2023, the Federal Reserve Board fined Regions for failing to effectively monitor a portfolio of home equity loans for compliance with flood insurance regulations. ViolationTracker documents a pattern of penalties across consumer protection and securities compliance, indicating persistent governance shortcomings in preventing harm to retail customers and investors.