CNN

U.S. Bank fined for opening ‘sham’ accounts for customers

Jul 30, 2022, 8:26 PM
Close-up of sign for US Bank at branch in Lafayette, California, April 4, 2019. (Photo by Smith Col...
Close-up of sign for US Bank at branch in Lafayette, California, April 4, 2019. (Photo by Smith Collection/Gado/Getty Images)
(Photo by Smith Collection/Gado/Getty Images)

(CNN) — The fifth-largest commercial bank in the US was fined by the Consumer Financial Protection Bureau for illegally accessing consumer credit reports and opening accounts without their permission.

U.S. Bank, which is based in Minneapolis and has over $559 billion in assets, pressured its employees to meet sales goals as part of their job requirements, offering them incentives for selling bank products, the regulator said. In order to meet those goals, the bank’s employees illegally accessed customer credit reports and personal data to open accounts without permission, the investigation found.

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

“For over a decade, U.S. Bank knew its employees were taking advantage of its customers by misappropriating consumer data to create fictitious accounts,” said CFPB Director Rohit Chopra in a press release.

In a statement to CNN Business, U.S. 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 settlement is “related to legacy sales practices involving a small percentage of accounts dating back to 2010,” U.S. Bank said in a statement Saturday. “We are pleased to put this matter behind us.”

U.S. Bank has over 2,800 branches throughout the United States.

The CFBP said its investigation found evidence that the bank was aware that its employees were opening accounts without customers’ authorization, and did not have measures in place to prevent and detect them. The bank’s sales campaigns and compensation programs rewarded employees for selling bank products, the agency added

Regulators found that the employees opened deposit accounts, credit cards and lines of credit that carried high interest rates and expensive fees that were passed on to the customer.

“U.S. Bank’s conduct harmed its customers in the form of unwanted accounts, negative effects on their credit profiles, and the loss of control over personally identifiable information,” the CFBP said in its release, saying customers were forced to close the unauthorized accounts in their names and seek refunds themselves.


The-CNN-Wire™ & © 2022 Cable News Network, Inc., a WarnerMedia Company. All rights reserved.

KSL 5 TV Live

Top Stories

CNN

FILE PHOTO...
Tina Burnside, Kiely Westhoff and Amya Henry, CNN

Suspect in the shooting deaths of 4 people in Ohio was captured in Kansas

A suspect in the shooting deaths of four people at multiple sites outside of Dayton Ohio, has been arrested, police said.
23 hours ago
Senate Majority Leader Chuck Schumer (D-NY) speaks at news conference following the weekly Senate D...
Clare Foran and Ali Zaslav, CNN

Senate begins ‘vote-a-rama’ to advance Democrats’ sweeping health and climate bill

The Senate on Saturday voted to advance Democrats' sweeping health care and climate bill toward final passage, putting the package on track to pass the chamber as soon as this weekend.
23 hours ago
The US and Indian militaries will hold high-altitude exercises in Auli in the Indian state of Uttar...
Vedika Sud, Barbara Starr, Sahar Akbarzai and Kathleen Magramo, CNN

US to take part in military exercise near India’s disputed border with China

The United States is to take part in a joint military exercise with India less than 62 miles from their disputed border with China.
23 hours ago
Barricades block off a portion of Elm Street in Laurel, Nebraska, where four people were found dead...
Rebekah Riess, Raja Razek and Jarrod Wardwell, CNN

Arrest in quadruple homicide after victims are found dead in 2 house fires in a small Nebraska town

The suspect in a Nebraska quadruple homicide where the victims were found dead in two separate house fires has been hospitalized with burns over much of his body.
23 hours ago
Some of the women who were hanged during the Salem witch trials have been memorialized. (Stephan Sa...
Scottie Andrew, CNN

The last Salem witch has been exonerated, thanks to an eighth-grade teacher and her students

It's never too late to right a historical wrong -- even if that restoration of justice comes nearly 330 years later.
23 hours ago
Cars are seen stuck in mud and debris at The Inn at Death Valley on August 5. (National Park Servic...
Amanda Musa, CNN

Approximately 1,000 people stranded at Death Valley National Park

Death Valley National Park officials announced its closure Friday due to substantial flooding within the park.
23 hours ago

Sponsored Articles

tips how to quit smoking...

7 Tips How to Quit Smoking | Quitting Smoking Might be One of the Hardest Things You Ever Do but Here’s Where You Can Start

Quitting smoking cigarettes can be incredibly difficult. Here are 7 tips how to quit smoking to help you on your quitting journey.
Photo: Storyblocks...
Blue Stakes of Utah 811

Blue Stakes of Utah 811: 5 Reasons To Call 811 Before You Dig When Working in Your Yard

Call before you dig. Even at home, you could end up with serious injuries or broken utilities just because you didn't call Blue Stakes of Utah 811.
Days of...
Days of '47 Rodeo

TRIVIA: How well do you know your rodeo? Take this quiz before you go to the Days of ’47!

The Utah Days of ’47 Rodeo presented by Zions Bank is a one-of-a-kind Gold Medal Rodeo being held July 20-23, 25 at 7:30 PM. The Days of ’47 Rodeo How well do you know your rodeo trivia? Take the quiz to test your know-all before heading out to the Days of ’47 Rodeo at the […]
cyber security through multi factor authentication setup...
Les Olson IT

How multi factor authentication setup helps companies stay safe

Multi factor authentication (MFA) setup is an important security measure that every company should implement for their workers. It’s also wise to install it for your personal and home accounts.
...
Lighting Design

Check out these stunning lamps with stained glass shades

Lamps with stained glass shades are statement pieces that are more than simply aesthetic. They also meet a functional requirement: to light up a room.
Address Bar of internet browser shows internet access...
AARP Utah

Utah voters 50+ support increased access to Internet

The AARP surveyed Utah voters aged 50 plus about internet access and if they support the expansion of broadband, especially in rural areas currently lacking it.
U.S. Bank fined for opening ‘sham’ accounts for customers