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Fifth Third Bank to pay $5 million to settle auto insurance allegations

About 1,000 customers had their vehicles repossessed after defaulting on monthly payments that included charges for unnecessary insurance, the CFPB said

Fifth Third Bank has agreed to pay millions to settle allegations that it forced auto loan customers into duplicative car insurance policies that made their monthly payments more expensive, leading in some cases to repossessions of vehicles from customers who could not afford to pay.

The Consumer Financial Protection Bureau said Tuesday in court documents that the Ohio-based bank improperly applied about 37,000 insurance policies between 2011 and 2019. The agency ordered the bank to pay a $5 million penalty and provide unspecified redress for affected customers.

CFPB Director Rohit Chopra said the bank had been "illegally loading up auto loan bills with excessive charges," with about 1,000 families losing their cars to repossession as a result.

https://www.washingtonpost.com/business/2024/07/09/cfpb-fifth-third-bank/

 

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