The U.S. Bank Finance News | CFPB Orders U.S. Bank To Pay $37.5 Million For Sham Accounts
In a recent U.S. Bank Finance News and enforcement action, the Consumer Financial Protection Bureau (CFPB) said that U.S Bank violated multiple federal laws by allowing employees to use customers’ personal information to create sham accounts. As a result of the action, the bank will pay the $37.5 million fine and refund the illegal fees to the customers, plus interest. This reminds me of how the CFPB fined Wells Fargo $100 million in 2016 for similar activities.
Shall we get a close view, and understanding of this U.S. BankFinance News in the USA with some sections we love to elaborate more on and most importantly why you really need to read for you to understand this U.S. Bank Finance News better.
Check Out More Info About CFPB Investigations At https://www.consumerfinance.gov/
U.S. Bank Ordered To Pay $37.5 Million By CFPB – A Finance News Overview
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What Is About CFPB | Everything You Need To Know About The Consumer Financial Protection Bureau
CFPB stands for Consumer Agency Financial Protection Bureau. As a 21st-century agency, the Consumer Financial Protection Bureau enforces and implements federal consumer financial laws and ensures fair, transparent, and competitive markets for consumer financial products.
The CFPB’s goal is to make consumer financial markets work for consumers, responsible providers, and the economy as a whole. A market that allows consumers to compare their options and understand the risks, prices, and terms upfront. Quality and service are provided equally by all companies under the same rules governing consumer protection.
The U.S. Bank Makes The Same Mistakes As Wells Fargo
Employees were opening unauthorized accounts with customer data, and the bank knew, or should I say they were aware of it. Cross-selling products and services to existing customers are common for banks and credit unions. CFPB reports that sales goals became part of the job requirements at U.S. Bank due to excessive pressure and incentives.
In a similar scheme, Wells Fargo engaged for several years, resulting in a $100 million fine from the CFPB and a $3 billion settlement with the Department of Justice, Securities and Exchange Commission, and two U.S. attorneys.
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Conclusion
According to the Consumer Financial Protection Bureau, U.S Bank has been fined $37.5 million for misappropriating customer data to open credit accounts without consent. It is also the bank’s responsibility to provide assistance to the affected customers, also to be noted down in the history of how consumer Financial Protection Act, Fair Credit Reporting Act, Truth in Lending Act, and Truth in Savings Act violations were committed by the bank.
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