U.S. Bank to Refund $48 Million for Improper Credit Card Practices
Last week, the Consumer Financial Protection Bureau lowered the boom on U.S. Bank for improper credit card practices. The CFPB ordered the bank to refund $48 million to customers.
The bank must also pay fines of $5 million to the CFPB and $4 million to the Office of the Comptroller of the Currency.
The CFPB found that U.S. Bank charged its customers for certain identity protection and credit monitoring services that were never activated. These add-on products, such as Privacy Guard and Identity Secure Services, were supposed to help consumers monitor their credit reports. In some cases, customers were also charged interest and fees as a result of the service.
These practices took place between 2003 and 2012, and impacted over 420,000 U.S. Bank customers.
“[This] action will provide $48 million in relief to U.S. Bank customers who were illegally charged for identity protection services they did not receive,” said CFPB Director Richard Cordray in a statement. “We have consistently warned companies about practices related to add-on products and we will do what is necessary to prevent further harm to consumers. “
The bank released an apology to its customers in a statement: “U.S. Bank adheres to the highest levels of ethical business practices to ensure that customers confidently receive quality products and services from their bank. We regret that errors occurred when our customers purchased credit monitoring and identity theft products from Affinion, and that some of our customers did not receive the full benefit of those products.”
If you are a U.S. Bank customer, you may soon be receiving a credit to your account or a refund check in the mail