CFPB fined $37.5 million to U.S. Bancorp for Opening Sham Accounts
A fine was imposed by CFPB (Consumer Financial Protection Bureau) on fifth-largest commercial bank of United States named U.S. Bancorp which based on Minneapolis for using customer data to open Sham Accounts [Fake Accounts] and new lines of credit without permission of their customers. The company compelled employees to access customer credit reports and open new accounts to inflate sales figures.
US Bank is being fined $37.5 million for opening fraudulent lines of credit and creating false accounts to inflate sales numbers over more than a decade. Aside from the $37.5 million fine, Minneapolis-based U.S. Bank also has to refund any improperly collected fees and charges related to the fraudulent accounts and pay interest to consumers.