CFPB Fine: Senators seek more information from US bank

Several Democratic senators launched a letter to the CEO of the American bank Andrew Cecere demanding further information after the Consumer Financial Protection Bureau (CFPB) fined the financial institution (FI) $37.5 million in an accounts receivable scandal.

The letter also requests that US Bank brief congressional staff on the matter and respond to a number of questions by September 6. CFPB investigation spanned five years and found that US Bank violated a number of laws by illegally accessing consumer credit reports and opening accounts without people’s permission.

See also: CFPB fines US bank $37.5 million over unauthorized accounts

The CFBP said its investigation found evidence the bank knew employees were opening accounts without customers’ permission and paying inducements for the sale of banking products, PYMNTS reported last month.

The senators want to know if any employees who participated in the program are still working at the bank and how the data was used when opening unauthorized accounts. They also want to know how many consumers were affected, how many accounts were opened, what type, the amount of revenue generated, and a state-by-state breakdown.

The letter was signed by U.S. Senators Chris Van Hollen (D-Maryland), Sherrod Brown (D-Ohio), Elizabeth Warren (D-Massachusettes), Catherine Cortez Masto (D-Nevada) and Robert Menendez (D-New Jersey ) .

Read more: Senators at CFPB: Using authority to protect consumers from P2P payment scams

“It is unacceptable that US Bank has incentivized and pressured its employees to take advantage of their unique access to a veritable treasure trove of sensitive personal information to enroll unsuspecting customers in fee-incurring financial products and services” , according to the letter. .

The letter argues that the CFPB consent order “tells a problematic story” of the nation’s fifth largest bank inciting its employees to increase their profits “at the expense of its own customers”.

Senators point to similar incidents with Wells Fargo, where a $3 billion fine was imposed by the Securities and Exchange Commission (SEC), a $100 million fine imposed by the CFPB, a $35 million tax from the Office of the Comptroller of the Currency (OCC), and a fine of $50 million by the City and County of Los Angeles.

“It is disturbing that this is the second time in less than a decade that the federal government has called a major bank to account and reparations for perpetuating this practice,” the senators said in the letter.

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