U.S. Bank fined $36 million for freezing unemployment debit cards during Covid-19 pandemic
Publishing timestamp: 2023-12-19 17:23:09
Summary
U.S. Bank has been fined nearly $36 million by federal regulators for violating consumer protection laws by freezing access to prepaid debit cards used for unemployment insurance benefits during the Covid-19 pandemic. The Consumer Financial Protection Bureau fined the bank $21 million, while the Office of Comptroller of Currency imposed an additional $15 million penalty. The bank froze accounts due to suspected fraud but failed to provide a reliable method for consumers to regain access to their benefits. U.S. Bank will provide $5.7 million in redress to consumers and pay a $15 million civil money penalty.
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Keywords: politics, covid-19 pandemic, us bancorp, securities fraud, business news, u.s. economy, social issues, products and services, breaking news: politics, washington,
Source: https://www.cnbc.com/2023/12/19/us-bank-fined-36-million-for-frozen-unemployment-benefits.html