US Bank Fined $37.5Mln for Opening Fake Customer Accounts to Reach Sales Goals - Watchdog

WASHINGTON (Sputnik) - The US government fined one of the country’s largest banks more than $37 million for unlawfully retrieving customers’ credit reports and opening fictitious accounts, the Consumer Financial Protection Bureau (CFB) said Thursday.

"CFPB… took action against U.S. Bank for illegally accessing its customers’ credit reports and opening checking and savings accounts, credit cards, and lines of credit without customers’ permission," the agency said in a press release. "U.S. Bank must make harmed customers whole and pay a $37.5 million penalty."

A CFPB probe found specific evidence that the bank was aware that sales pressure was leading employees to open accounts without authorization, the release added.

"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 release said.

In addition to the fine, the bank must develop a plan to forfeit and return all unlawfully charged fees and costs to harmed customers, according to the release.

U.S. Bank, based in Minneapolis, is the fifth largest bank in the United States with nearly $560 billion in assets, the release said.