Banking Debt Articles

U.S. Bank Slapped With Massive Fines Over Unfair Billing Practices

Written by Steve Rhode

The Office of the Comptroller of the Currency has just announced a $4 million civil money penalty against U.S. Bank National Association, Cincinnati, Ohio, and ordered restitution of $47.9 million to more than 420,000 consumer accounts.

The OCC says the bank unfairly billed customers for identity theft protection products marketed by the bank and sold by its vendor.

The restitution ordered by the OCC will benefit consumers who enrolled in and paid for identity theft protection products between February 2003 and August 2012, but did not receive the full benefit of the products. The restitution will include the full amount paid for these products, plus any associated over-limit fees and finance charges.

The issue appears to stem from an alleged lack of control by the bank over its third-party vendor that supplied the underlying service.

The CFPB is planning on taking action against the bank as well according to the OCC. The CFPB is requiring U.S. Bank to pay them a $5 million civil money penalty.

Sincerly,
Steve

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About the author

Steve Rhode

Steve Rhode is the Get Out of Debt Guy and has been helping good people with bad debt problems since 1994. You can learn more about Steve, here.

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