OCC Assesses $15 Million Penalty Against U.S. Bank for Unfair Practices

WASHINGTON—The Office of the Comptroller of the Currency (OCC) today assessed a $15 million civil money penalty against U.S. Bank, National Association, Cincinnati, Ohio, for violations of law relating to the bank’s administration of a prepaid card program to distribute public unemployment insurance benefit payments.

The OCC found that the bank engaged in unfair practices in violation of Section 5 of the Federal Trade Commission Act. From August 2020 through at least March 2021, the bank had deficient processes for permitting consumers to regain access to their unemployment benefits in a reasonable timeframe following account freezes. In response to supervisory concerns, the bank committed to remediate harmed consumers.

The OCC’s civil money penalty is separate from, but coordinated with, the Consumer Financial Protection Bureau (CFPB), which issued an enforcement order today against the bank. The CFPB ordered the bank to pay a $15 million civil money penalty and redress harmed consumers. The OCC penalty will be paid to the U.S. Treasury.

Related Link

IR Press

Share
Published by
IR Press

Recent Posts

OCC Announces Enforcement Actions for November 2024

WASHINGTON—The Office of the Comptroller of the Currency (OCC) today released enforcement actions taken against…

7 hours ago

Treasury Sanctions Gazprombank and Takes Additional Steps to Curtail Russia’s Use of the International Financial System

Treasury imposes sanctions on dozens of Russian banks, securities registrars, and finance officials; OFAC issues…

23 hours ago

Acting Comptroller Testifies on State of the Federal Banking System

WASHINGTON—Acting Comptroller Michael J. Hsu today testified on the state of the federal banking system…

1 day ago

Remarks by Assistant Secretary for International Finance Brent Neiman on the U.S. Cross-Border Payments Agenda

As Prepared for Delivery Thank you very much for the opportunity to be here today, and…

3 days ago

Remarks by Assistant Secretary for Investment Security Paul Rosen at the Third Annual CFIUS Conference

As Prepared for Delivery Good afternoon.  I’d like to start by thanking our panelists today for…

3 days ago