Red Lake Nation News - Babaamaajimowinan (Telling of news in different places)

U.S. Bank fined $37.5M for creating unauthorized accounts for sales goals

Tactics had included opening credit cards and other accounts in customers' names without their permission

 

Anthony Soufflé, Star Tribune

The government's consumer watchdog on banks investigated U.S. Bancorp's aggressive sales practices, which the agency says ended in 2016.

The Consumer Financial Protection Bureau on Thursday fined U.S. Bancorp $37.5 million for aggressive sales tactics in the early 2010s, including opening credit cards and other accounts on customers who had not requested them.

The government's consumer watchdog on banks said that the Minneapolis-based company, which runs U.S. Bank, violated three federal laws by opening accounts that "likely caused substantial injury" to customers from fees and damaged credit.

In addition to the fine, the agency said U.S. Bank must develop a plan to return all the fees and costs with interest.

https://www.startribune.com/u-s-bank-settles-government-probe-into-sales-tactics-with-37-5m-fine/600193837/

 

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