CFPB Slaps $37.5-M Fine On U.S. Bank For Opening Fake Customer Accounts

The Consumer Financial Protection Bureau (CFPB) has fined US Bank $37.5 million for illegally opening customer accounts without their permission, Danielle Haynes reported for United Press International (UPI).

Photo Insert: The Minneapolis-based US Bank is the fifth-largest bank in the US, operating more than 2,800 branches across the country.

The agency said the bank pressured and incentivized its employees to sell products to customers, imposing sales goals as part of their job requirements. The products included checking and savings accounts, credit cards and lines of credit.

Employees accessed the customers' credit reports without permission so they could open these accounts.

"For over a decade, US Bank knew its employees were taking advantage of its customers by misappropriating consumer data to create fictitious accounts," CFPB Director Rohit Chopra said.

"We all must do more to hold lawbreaking companies accountable when they abuse and misuse our sensitive personal data."

CFPB said US Bank's actions caused harm to its customers by creating unwanted accounts that then took time and energy to close and resolve, improperly charging fees on said accounts, negatively impacting their credit, and causing them to lose control of their personally identifiable information.

These actions violated the Fair Credit Reporting Act, the Consumer Financial Protection Act, the Truth in Lending Act and the Truth in Savings Act, the CFPB said.

In addition to the fine, which will be deposited into the CFPB's victims relief fund, US Bank will be required to return all unlawfully charged fees and costs to affected customers plus interest.

The Minneapolis-based US Bank is the fifth-largest bank in the US, operating more than 2,800 branches across the country. In 2016, CFPB also fined Wells Fargo $100 million for secretly opening unauthorized accounts.

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