Posted on Dec 19, 2023
U.S. Bank fined $36 million for freezing unemployment debit cards during COVID-19 pandemic
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"The Consumer Financial Protection Bureau on Tuesday announced it has fined U.S. Bank
nearly $21 million for cutting off access to unemployment insurance benefits during the height of the COVID-19 pandemic. The Office of the Comptroller of the Currency imposed an additional $15 million penalty on the bank over the same practices."
nearly $21 million for cutting off access to unemployment insurance benefits during the height of the COVID-19 pandemic. The Office of the Comptroller of the Currency imposed an additional $15 million penalty on the bank over the same practices."
U.S. Bank fined $36 million for freezing unemployment debit cards during COVID-19 pandemic
Posted from cnbc.com
Banking
Punishment
Posted 5 mo ago
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LTC Eugene Chu
..."The $15 million OCC portion of the fine was related to alleged unfair practices under the Federal Trade Commission Act.
U.S. Bank also violated the Consumer Financial Protection Act and failed to immediately investigate alleged unauthorized electronic fund transfers under the EFT Act, according to the CFPB.
Consumers were unable to access the funds that had been reported as unauthorized, because the bank incorrectly required additional written confirmation about the transactions and did not dispense provisional credits without it.
"U.S. Bank must comply with the law, and the CFPB and OCC are making the bank pay for its conduct," Chopra said.
Under a consent order, U.S. Bank will provide $5.7 million in redress to consumers and pay a $15 million civil money penalty. The OCC penalty will be paid to the U.S. Treasury.
U.S. Bank is based in Minneapolis, Minnesota, and had $668 billion in assets as of Sept. 30, according to the CFPB."
..."The $15 million OCC portion of the fine was related to alleged unfair practices under the Federal Trade Commission Act.
U.S. Bank also violated the Consumer Financial Protection Act and failed to immediately investigate alleged unauthorized electronic fund transfers under the EFT Act, according to the CFPB.
Consumers were unable to access the funds that had been reported as unauthorized, because the bank incorrectly required additional written confirmation about the transactions and did not dispense provisional credits without it.
"U.S. Bank must comply with the law, and the CFPB and OCC are making the bank pay for its conduct," Chopra said.
Under a consent order, U.S. Bank will provide $5.7 million in redress to consumers and pay a $15 million civil money penalty. The OCC penalty will be paid to the U.S. Treasury.
U.S. Bank is based in Minneapolis, Minnesota, and had $668 billion in assets as of Sept. 30, according to the CFPB."
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