{"id":37041,"date":"2023-03-08T09:17:13","date_gmt":"2023-03-08T14:17:13","guid":{"rendered":"https:\/\/d56fg8tfg.fitnews.club\/finance\/cfpb-orders-u-s-bank-to-pay-48-million-refund-to-consumers-illegally-billed-for-services-not-received\/"},"modified":"2023-03-08T09:17:13","modified_gmt":"2023-03-08T14:17:13","slug":"cfpb-orders-u-s-bank-to-pay-48-million-refund-to-consumers-illegally-billed-for-services-not-received","status":"publish","type":"post","link":"https:\/\/d56fg8tfg.fitnews.club\/finance\/cfpb-orders-u-s-bank-to-pay-48-million-refund-to-consumers-illegally-billed-for-services-not-received\/","title":{"rendered":"CFPB Orders U.S. Bank to Pay $48 Million Refund to Consumers Illegally Billed for Services Not Received"},"content":{"rendered":"
Approximately 420,000 Consumers Unfairly Charged for Identity Protection \u201cAdd-On\u201d Products to Receive Full Refunds<\/em><\/strong><\/p>\n WASHINGTON, D.C. \u2014<\/strong> Today, the Consumer Financial Protection Bureau (CFPB) is ordering U.S. Bank to provide an estimated $48 million in relief to consumers harmed by illegal billing practices. U.S. Bank consumers were unfairly charged for certain identity protection and credit monitoring services that they did not receive. These services were sold as \u201cadd-on products\u201d for credit cards and other bank products such as mortgage loans and checking accounts. U.S. Bank will pay a $5 million civil money penalty to the CFPB and a $4 million penalty to the Office of the Comptroller of the Currency (OCC). <\/p>\n \u201cToday\u2019s action will provide $48 million in relief to U.S. Bank customers who were illegally charged for identity protection services they did not receive,\u201d said CFPB Director Richard Cordray. \u201cWe have consistently warned companies about practices related to add-on products and we will do what is necessary to prevent further harm to consumers. \u201c<\/p>\n According to the CFPB order, U.S. Bank\u2019s service provider enrolled bank customers in identity protection add-on products that promised to monitor consumers\u2019 credit and alert them to potentially fraudulent activity. These credit monitoring programs, known as \u201cPrivacy Guard\u201d and \u201cIdentity Secure\u201d were marketed by U.S. Bank and administered by its third-party vendor. <\/p>\n In order for a company to provide credit monitoring services, it generally must obtain the customer\u2019s written authorization. U.S. Bank customers, however, were charged for these products as soon as they enrolled without the necessary authorization to perform the services. As a result, consumers:<\/p>\n Pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act, the CFPB has the authority to take action against institutions engaging in unfair, deceptive, or abusive practices. The bank will issue refunds to over 420,000 customers in the amount of approximately $48 million. This is the seventh action the Bureau has taken to address illegal practices with respect to credit card and other add-on products. <\/p>\n To ensure that U.S. Bank honors its obligation to repay affected consumers and that consumers are no longer subject to these unfair billing practices, the CFPB\u2019s order requires that U.S. Bank:<\/p>\n Today\u2019s action is being taken in coordination with the OCC which is separately ordering restitution from U.S. Bank for the same illegal practices. These illegal practices were uncovered through supervisory examinations conducted by the CFPB and the OCC. The amount in the OCC\u2019s order includes the same $48 million amount to be paid to the approximately 420,000 consumers harmed by these illegal practices. The OCC is also ordering U.S. Bank to pay $4 million in civil money penalties for the unfair billing practices, in addition to the $5 million penalty ordered by the CFPB.<\/p>\n The full text of the CFPB\u2019s Consent Order is available at: https:\/\/files.consumerfinance.gov\/f\/201409_cfpb_consent-order_us-bank.pdf<\/span> \n
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Enforcement Action<\/h3>\n
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