US Bank fined for opening ‘sham’ accounts for customers

US Bank, which is based in Minneapolis and has more than $559 billion in assets, pressured its employees to meet sales targets as part of their job requirements, encouraging them to sell bank products. offered, the regulator said. To meet those goals, bank employees illegally accessed customer credit reports and personal data to open accounts without permission, the investigation found.

The CFBP announced Thursday that it fined US Bank $37.5 million after a five-year investigation.

“For more than a decade, US Bank knew that its employees were taking advantage of their customers by misusing consumer data to create fake accounts,” CFPB director Rohit Chopra said in a press release.

In a statement to CNN Business, US Bank said it has made “process and oversight improvements” since 2016 regarding sales practice concerns. Employees now receive incentives only for accounts where the customer uses the service.

The agreement pertains to “legacy sales practices involving a small percentage of accounts dating back to the year 2010,” US Bank said in a statement on Saturday. “We are pleased to have this matter behind us.”

US Bank has more than 2,800 branches across the United States.

CFBP said that its investigation has found evidence that the bank was aware of this that its employees were opening accounts without customers’ authorization, and that there were no measures to prevent and trace them. The agency said the bank’s sales campaigns and compensation programs rewarded employees for selling bank products.

regulators found that Employees open deposit accounts, credit cards and lines of credit that High interest rates and expensive fees that used to be passed on to the customer,

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“US Bank’s conduct caused harm to its customers in the form of unsolicited accounts, a negative impact on their credit profiles and loss of control over personally identifiable information,” the CFBP said in its release. name and want a refund myself.