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A bank created fake accounts, forced clients into unnecessary car insurance and repossessed vehicles when they didn’t pay. Now it has agreed to $20 million in penalties (www.cnn.com)

submitted 4 months ago by btaf45 to c/[email protected]

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[–] [email protected] 2 points 4 months ago

This is the best summary I could come up with:

“Fifth Third Bank demanded borrowers pay for coverage they did not need or else face delinquency, additional fees and repossessions,” the agency said in a statement.

And the agency is ordering the bank “to clean up these broken business practices or else face further consequences,” CFPB director Rohit Chopra noted.

In addition, CFPB said Tuesday that it had filed a proposed court order that would require the bank to pay $15 million in penalties pertaining to practices that incentivized employees to create fake customer accounts.

The proposed order also bans Fifth Third “from setting employee sales goals that incentivize fraudulently opening accounts,” CFPB said.

“We have already taken significant action to address these legacy matters, including identifying issues and taking the initiative to set things right.

In 2015, the bank was ordered to pay $18 million to harmed Black and Hispanic borrowers in what CFPB charged was discriminatory auto loan pricing.

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