U.S. Bank fine overview:
- Who: The Consumer Financial Protection Bureau and Office of the Comptroller of the Currency announced a $36 million U.S. Bank fine.
- Why: U.S. Bank improperly prevented consumers from accessing their unemployment benefits during the COVID-19 pandemic.
- Where: The U.S. Bank fine will pay $5.7 million to certain U.S. consumers whose accounts were frozen.
U.S. Bank will reportedly pay a fine of nearly $36 million over allegations it froze tens of thousands of accounts and prevented consumers from accessing unemployment benefits during the COVID-19 pandemic, Law360 reports.
The Consumer Financial Protection Bureau and Office of the Comptroller of the Currency (OCC) announced the U.S. Bank fine on Dec. 19, in which the bank will pay a $15 million penalty and pay $5.7 million to consumers whose accounts were frozen. The OCC also issued a separate $15 million U.S. Bank fine.
U.S. Bank employment benefit investigation found bank improperly denied account access
The CFPB and OCC jointly investigated the U.S. Bank unemployment benefit freeze issue and found that the bank failed to allow customers to quickly regain access to their frozen accounts during the COVID-19 pandemic. U.S Bank also allegedly failed to provide provisional account credits while it looked into potentially unauthorized transfers.
U.S. Bank reportedly had contracts to deliver unemployment benefits to millions of consumers who were unemployed during the COVID-19 pandemic. The U.S. Bank unemployment benefit was provided through a ReliaCard prepaid card.
However, U.S. Bank allegedly froze those customers’ accounts for weeks at a time due to the anti-fraud measures it implemented. Due to these expanded measures, the CFPB alleged the bank did not have an adequate method for consumers to verify their identities to unfreeze their accounts.
Bank failed to provide provisional account credits on reported unauthorized transfers
Additionally, U.S. Bank failed to provide consumers with provisional account credits when they reported unauthorized transfers, the CFPB said. In many cases, the bank allegedly improperly required consumers to provide written information about the reported unauthorized transfers from their accounts.
“At a time when employment was close to 15%, many out-of-work Americans throughout the country had little choice but to rely on U.S. Bank for their unemployment benefits,” CFPB Director Rohit Chopra said in a statement.
“U.S. Bank blocked access to accounts and demanded burdensome paperwork in order for consumers to regain access to their frozen benefits.”
U.S. Bank says the issues stemmed from the massive 4,000% growth of the ReliaCard program during the COVID-19 pandemic. The bank says it “stepped up to enable the government to provide assistance to those in need during the pandemic” and that it prevented more than $375 million in fraud due to its enhanced anti-fraud efforts.
Earlier this year, U.S. Bank was sued by an investor in the wake of allegations the bank opened unauthorized accounts that resulted in a $37.5 million fine from the CFPB.
Did you experience frozen U.S. Bank unemployment benefits during the COVID-19 pandemic? Tell us your story in the comments.
The CFPB U.S. bank fine case is In the Matter of: U.S. Bank National Association, Case No. 2023-CFPB-0019, before the U.S. Consumer Financial Protection Bureau. The OCC U.S. Bank unemployment benefit case is In the Matter of: U.S. Bank National Association Cincinnati, Ohio, Case No. AA-ENF-2023-64, before the U.S. Department of the Treasury, Office of the Comptroller of the Currency.
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19 thoughts onU.S. Bank to pay $36M over pandemic unemployment benefit freeze
I had a terrible experience with my unemployment benefits when Covid hit. I’m in the state of Florida and I was getting benefits and then one day I couldn’t access my account. I was able to reset the password and get into my account. This occurred after I noticed I haven’t received my direct deposit after claiming my weekly benefits. I discovered that my banking information had been changed to a chase bank account that wasn’t mine. I’ve never had a Chase bank account. I took a. Screenshot of this. I could never get in touch with anyone at the unemployment office, I tried emailing our governor DeSantis, and tried every number I could to help get this resolved. I then was able to report fraud by the websites self help. I couldn’t change the banking info so if I claimed my weekly benefits someone else would get the money into this other bank account. In the process I called my bank to find out info on my direct deposit before I had to report fraud. So, up to this day it’s still unresolved. I even had a congress representative acting my liaison and still didn’t get it resolved. I had 5500 dollars left in unemployment benefits plus I missed out on the pandemic and extra emergency funds. My account stayed in account lock status for about a year. Then my case got escalated and I had to send all my bank statements to a guy that worked in the froud department for DOE Florida unemployment office including a signed affidavit. He said in his opinion it was clearly fraud and send my case to payroll to get my funds. So, then a lady named Tara in payroll refuses to issue my funds saying “we sent you that last deposit. She didn’t say where it was sent to, mind you she had all of my bank statements that showed otherwise. – nightmare experience that’s still unresolved to this day. And I’m still unemployed. Thanks for nothing
Please add me
I was receiving payments just fine direct deposit to my cash app , then Biden gets in , all of a sudden I’m seeing my payments being paid out but not to me , I had to call NC.gov unemployment, they tell me that , for No reason, my payments were now being sent to a debit card that i didnt order, but had been sent to an address that i hadnt lived in for a number of years . NOT AT ALL THE ADDRESS LISTED FOR ME IN THE SYSTEM, Then after going through the whole ” update address” bs , i had to call the bank directly , Nobody Knew what was going on ! Not the NC workers , the id.me staff or the Bank ! I received the card there was one payment on it ,
the whole account got frozen and i had to go through MULTIPLE id.me verifications and talking to reps , DAILY, Weekly , monthly trying to get my deposits , they were showing paid out for NEARLY 4 MOS! Once I began recieving pay outs again ALLL THOSE WEEKS that I wasn’t allowed to sign in and register, I was told that they would back date them and They absolutely did not ! I could literally see that I was owed near 6000 but the program was ending and i was told by nc some lame lie that , those payouts that i didn’t receive, will just get saved for the next time I needed unemployment . Just making stuff up !
US bank fines aren’t enough! Why aren’t these CRIMINALS AND CROOKS getting jail time ?? Why are we giving them slaps on the wrist for Fraud, Treason & conspiracy to commit fraud & treason. I saw where people that had been accused of being over paid were getting HUGE FINES and Jail time . This makes no sense ! I tried to log in and the account recently says that there is no case open and that all payments have been made. That’s not true. Id like my $5890 please and thank you! I was 39 at the time , I have had employment since 13 ! I worked over summer breaks with permission slips THAT’S MY MONEY.
These bankers need more than 50-60 mil fines ! They make billions DAILY.
I received one payment then it stopped.. next I received mail about over payment. I appeal which took more than a year to settle.. I did not receive any of the covid pay like I was told was supposed to get. I can’t even get access to the account I had with US Bank and called unemployment office I was told that I got the pandemic pay.
Yes, and I never did receive those funds, even though my unemployment record states that I did.
Us bank during mid January, 2021. Covids first wave with our government. and entire world was either prosecuted or packed like prisoners in what we once felt safe and fearless playing life spending 33 years for cardboard confidence. Before they even closed Walmart purchased a 40 dollar new router. Kong story short, 3-4months of us bank every other day billing my card 405 dollar us bank overdraft and the notice by mail my account now terminated and please pay the 500 hundred owed from overdraft in 30 days or goes to collections. Still yet to be able aback account anywhere and I called management every 2 weeks and one time he offered to remove 40 dollars and thought he was being more than fair. My phone #(573) 270-7509
That happened to me
Was denied access to account for a good minute and had to verify and reverify several times through a timeframe of about a year or so. No money and unemployed while being denied access to benefits that were issued but weren’t released due to an apparent freeze because of fraud protection and investigations.
Add me please
Hello,
I had over $3,000 in my COVID-19-paid debit account when it was closed and would get a check I never did. I was sent a letter saying I needed to call to get the money, They sent me a check for around 150$ not 3000 plus. I have the letter somewhere I will find it but when i asked if they locate the letter they couldn’t but they have found the other letters they sent me,
Also the Morris they owed me more in settlements but I was serving 45 days for DUI and missed the deadline, I was unable to pay my bills through bill pay because they didn’t go through and the money didn’t go through cause they took the 3,000$
BOA charged me 1000’s over chargeback over drafts and had no cap. I can’t open accounts at any banks because of BOA and also WELL FARGO from 2002-2016 wells fargo charged me over 10,000$ of overdraft fees, especially in college from 2001-2005 student account I paid over 4,000$ in odf’s that went stopped around 300-600$
I’m owed over 3,000$ and I have never received a 1$ from the Wells Fargo ODF lawsuit
can u help me get my money, I want a larger lawsuit since they chose to avoid paying me, they said in 2006 I WOULD receive 200$ for every 35$ ODF that was charged over the 1st meaning I was charged 350$ and i would get 200$ for the excess over first 35$,
Also, US BANK I had an account in 2018-20 and someone stole my debit card number and took out over 750$ and they refused =to credit the account back and would not let me file anything