Skip to content
City PM
  • Germany
  • France
  • Europe
  • Markets
  • Business
  • Opinion
  • DE
  • Germany
  • France
  • Europe
  • Markets
  • Business
  • Opinion
  • DE
Thursday 14 July 2016 7:20 pm

Santander Bank fined $10m in the US to settle vendor’s overdraft practices

By: Hayley Kirton

Add as a preferred source on Google

Santander Bank has today been told to fork out a $10m (£7.5m) fine after one of its vendors signed customers up to overdraft services without their consent.

In addition to enrolling customers without their go-ahead, the Consumer Financial Protection Bureau (CFPB) said the bank's telemarketer misled customers into thinking the service offered was free, when it actually cost $35 per overdraft, and falsely claimed that its calls regarding the service were not a sales pitch. 

"Santander tricked consumers into signing up for an overdraft service they didn’t want and charged them fees," said Richard Cordray, director at CFPB. "Santander's telemarketer used deceptive sales pitches to mislead customers into enrolling in an overdraft service. We will put a stop to any such unlawful practices that harm consumers."

As well as forking out the fine, Santander has been ordered to give the customers concerned the chance to confirm they want the overdraft service and improve the way it oversees the telemarketing vendors it uses. 

A Santander spokesperson said: "Santander Bank is committed to always treating our customers fairly and ensuring our vendors do too. We regret that the vendor we hired to promote this service may not have followed our instructions and we did not supervise them as closely as we should have.

"These actions, which occurred several years ago, do not reflect our values and fell short of the high expectations we have for ourselves and our vendors."

Share this article

  • Facebook
  • X
  • LinkedIn
  • WhatsApp
  • Email

Similarly tagged content:

Sections

  • News

Categories

  • Banking
  • Business

Trending Articles

  • Citroën 2CV returns as a £13,000 electric car, and the timing is no accident

  • The former African gold miner taking on the billionaire Issa brothers

  • Rachel Reeves to unveil next steps for ring-fencing reform at Mansion House

  • Wimbledon: HMRC set to slap Sinner and Noskova with £1.6m tax bill

  • Barclays and Lloyds back calls to digitalise UK markets and unlock £33bn boost

More from City PM

  • Over a Quarter of UK Employees Admit to Using AI to Generate or Manipulate Expense Receipts to Top Up Their Salary

    Business Wire
  • Santander Financial Crime Transformation Leader Joins ThetaRay to Drive Enterprise AI Adoption

    Business Wire
  • Gloucester Rugby warn of risk to future as losses jump 450 per cent

    Sport Business
    Getty Images logo displayed on a smartphone screen against a blurred background, representing stock photography services.
  • Manchester United debt pile may force owners to fund new stadium

    Sport Business
    Breaking news conference with diverse group of professionals discussing current global economic trends and financial strat...
  • ‘Why single out banks?’: Santander chief hits out at UK tax regime

    Banking
    Ana Botín, CEO of Santander, speaking at a business conference, addressing financial strategies and global market trends.
  • Exclusive: Santander’s Ebury eyes £100m Lumon takeover

    Fintech
    Consultancy sector and AI
  • Santander: Fans to spend thousands watching World Cup from Britain

    Sport Business
    Business professionals discussing strategy in a modern office setting with a cityscape view through large windows
  • Barclays and Lloyds join banking sector plan for digital ID

    Banking
    Banking app interface showing financial transactions and account balance on a smartphone screen, emphasizing digital finan...

City PM — European politics, business and analysis.

Europe

  • Germany
  • France
  • Europe
  • UK & Ireland

Topics

  • Business
  • Markets
  • AI
  • Technology
  • Opinion
  • Energy

More

  • Politics
  • Economics
  • Fintech
  • Legal
  • Sport
  • Life

Company

  • About City PM
  • Editorial Policy
  • Corrections
  • Contact
  • Terms of Use
  • Privacy Policy
  • Cookie Policy
© 2026 City PM · Published by CityPM Media, Bahnhofstrasse 65, 8001 Zürich, Switzerland
About · Editorial Policy · Corrections · Contact · Privacy · Facebook