U.S. Bancorp to pay $37.5M fine over fake accounts

U.S. Bancorp in Minneapolis will pay a $37.5 million penalty to the Consumer Financial Protection Bureau to address claims it opened accounts without informing customers or getting their consent. 

The $591 billion-asset bank entered into a consent order with the CFPB on Thursday. 

The order addresses claims that U.S. Bancorp employees issued credit cards and lines of credit, along with deposit accounts, to meet sales goals and hit incentives targets. 

The CFPB said the actions ran afoul of the Truth in Lending Act, the Truth in Savings Act, the Consumer Financial Protection Act and the Fair Credit Reporting Act.

“The bank’s conduct likely caused substantial injury in the form of fees; negative effects on consumer-credit profiles; the loss of control over personal identifying information; and the expenditure of consumer time and effort,” the bureau said in a press release. 

U.S. Bancorp was ordered to stop any unlawful practices and to develop a plan to return all unlawfully charged fees and costs, plus interest.