U.S. Bank issued fine of $37.5M over unauthorized accounts

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U.S. Bank unauthorized customer account fine overview: 

• Who: U.S. Bank has agreed to pay a $37.5 million fine to resolve allegations made against it by the Consumer Financial Protection Bureau (CFPB). 
• Why: The CFPB alleges U.S. Bank pressured its employees into applying for credit for customers who had not consented to having new accounts opened on their behalf. 
• Where: U.S. Bank services consumers nationwide. 

U.S. Bank has agreed to pay a $37.5 million fine to resolve the Consumer Financial Protection Bureau’s (CFPB) claims the bank’s employees opened unauthorized customer accounts as a way to bolster sales. 

The CFPB, which announced the fine earlier today in a consent order, argues U.S. Bank pressured its employees into applying for credit for customers who had not consented to having a new account opened on their behalf. 

U.S. Bank employees would also sometimes access a customers’ credit report without having permission to do so while in the process of opening an unauthorized deposit, credit card or other account, according to the agency.

The CFPB further alleged U.S. Bank employees would sometimes fail to prepare certain account-related disclosures needed to open the ultimately unauthorized accounts. 

U.S. Bank fine also includes plan to repay customer fees on unauthorized accounts

In addition to agreeing to the civil penalty, U.S. Bank will also be required to come up with a plan to refund customers who incurred fees on unauthorized accounts made on their behalf, according to the U.S. Bank fine announcement. 

“For over a decade, U.S. Bank knew its employees were taking advantage of its customers by misappropriating consumer data to create fictitious accounts,” CFPB Director Rohit Chopra said in a statement. “We all must do more to hold lawbreaking companies accountable when they abuse and misuse our sensitive personal data.”

U.S. Bank does not admit any wrongdoing in agreeing to the settlement, according to the consent order. 

Earlier this month, U.S. Bank agreed to pay $450,000 to put an end to claims it violated the Fair Credit Reporting Act by allegedly obtaining customer credit without purpose or with their permission. 

Are you a U.S. Bank customer who has had a new credit card, deposit or other account opened without your knowledge or consent? Let us know in the comments.

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