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U.S. Bank lawsuit overview:
- Who: Plaintiff P. Michael Read, a U.S. Bank investor, filed a lawsuit against the bank.
- Why: Read is suing after the bank allegedly opened unauthorized bank accounts, which resulted in a fine from the Consumer Finance Protection Bureau.
- Where: The U.S. Bank lawsuit was filed in Delaware’s Court of Chancery.
- What are my options: Credit Karma offers banking options like checking and savings accounts.
Plaintiff P. Michael Read filed a lawsuit trying to get U.S. Bank to pay investors, like himself, after the company opened unauthorized accounts, according to American Banker.
The lawsuit, filed in Delaware’s Court of Chancery, named U.S. Bancorp CEO Andy Cecere and other top leaders from the company. The U.S. Bank lawsuit alleges leadership had compensation and incentive practices that led to fake accounts being opened and then profited by concealing the misconduct while keeping shareholders like Read in the dark, American Banker reported.
The lawsuit comes after the Consumer Finance Protection Bureau fined U.S. Bank $37.5 million for the actions that led to the unauthorized U.S. Bank account openings. A CFPB investigation found that U.S. Bank illegally accessed customer credit reports and then opened checking and savings accounts, credit cards, and lines of credit without the customers’ permission.
“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 about the fine. “We all must do more to hold lawbreaking companies accountable when they abuse and misuse our sensitive personal data.”
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U.S. Bank imposed sales goals as a part of the employees’ job requirements and also both pressured and provided incentives to have employees sell multiple products and services to customers, the CFPB found.
Employees of the bank then unlawfully accessed credit reports and sensitive personal data from customers in order to apply for and then open unauthorized U.S. Bank accounts, a practice that ultimately hurt shareholders, the U.S. Bank lawsuit claimed. U.S. Bank was aware of a similar issue at Wells Fargo but did nothing to stop it at their bank, the U.S. Bank lawsuit claims.
Earlier this year, two participants in the U.S. Bank’s 401(k) savings plan decided to sue the bank, alleging it mismanaged their retirement savings by allowing the plan to pay overly high fees.
Has anyone ever attempted to open a bank account in your name? Let us know in the comments.
The U.S. Bank unauthorized accounts lawsuit is Read v. Cecere, et al., Case No. 2023-0792, in the Delaware Court of Chancery.
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49 thoughts onU.S. Bank lawsuit alleges bank opened unauthorized accounts that resulted in fine
I have tried to open a savings account multiple times in person. They always tell me it will take up to 2 hours and there’s either not enough time or not enough staff. They have also told me I could do it myself online. If I wanted to transfer funds to an unknown/possible insecure account I would not “need” a physical bank. Not feeling comfortable.
I had credit card stolen I had a police report and US Bank never helped me and they kept taking my money and forcing me to pay thousands of dollars and they told me I was responsible but I signed a piece of paper stating if my credit cards were stolen I lost or if I was robbed they would take care of charges they said it was my fault
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Add me plz I banked with them for yrs
Who holds these banking institutions responsible, seems like all the banks do this until caught. Never ask permission just forgiveness…comes too mind. Is this more of 45* lax banking laws, wouldn’t surprise me one bit
They got me for $2,000 and I had to suffer from my bank making me pay it
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Are they a sister bank to Wells Fargo or owned by Wells Fargo…..I will be checking on that for my name. I did have a card through them and learned they are connected to Well Fargo. I closed the account fast.
U. S. Bank is not a sister bank to Wells Fargo. They’re two different organizations.
Please add me as I’m a US Bank customer. This is getting crazy. There’s nothing held confidential any longer.
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Yes, someone tried to deposit in my account, thr bank considered it fraud, they, instead of getting in touch with me, asking they blamed the attempted fraud on me & closed both my accounts, I’m 85 years old, I did not attempted fraud, but I was blamed for it.
Then before that, my social security deposit did not arrive at said bank I had zero money in my account, but 2 payments that were due came in for payment & instead of returning them, they paid them, almost $600.+ Dollars, that giving me overdraft, so when my renters.rs tax refund came to the suppose to be closed account ( closed by the bank not me) they took my tax money for payment, plus a deposit of $260. From the state they took both, once they got those then they closed the accounts. I place of sending the deposits back to sender to be sent in paper check, I feel I was not responsible because my account was at zero balance yet they paid them out. I am 85 yrs old, this money the refunds should have been mine because I did not authorize the payments of the overdraft
U.S Bank manager in Little Canada is rude and disrespectful to me. But no one would tell me how to file a complaint against him
I know this well not probable help me, I would like the refunds returned to me
But at least some way to report this branch managers ethics
Beverly Armor
I had a bank account at Wells Fargo and they let my card get cashed out
Yes that exact same thing happened to me at us bank too ,around 3 years ago and now I owe them hundreds of dollars for some bank account I never opened
Can you help me ? shaydra21@gmail.com
Yes add me