By Dean Seal

 

U.S. Bank NA will pay a $37.5 million fine to settle the U.S. Consumer Financial Protection Bureau's allegations that the bank illegally accessed customers' credit reports to open unauthorized accounts and credit cards.

The regulator said in an enforcement action Thursday that the bank used sales goals and incentives to pressure employees into selling multiple products and services to customers, ultimately pushing those employees to illegally access customers' sensitive personal data and then open accounts without their permission.

U.S. Bank neither admits nor denies the allegations, and has agreed to resolve the matter with a $37.5 million penalty.

The CFPB claims this misconduct went on for more than a decade, and that U.S. Bank was aware that its sales goals and incentive-compensation program were spurring employees to open unauthorized accounts, but did not have the controls in place to prevent the misconduct.

A spokesperson for U.S. Bank did not respond to requests for comment.

Shares of U.S. Bancorp, the bank's parent company, fell 2.4%, to $47.06, in early trading Thursday.

 

Write to Dean Seal at dean.seal@wsj.com

 

(END) Dow Jones Newswires

July 28, 2022 11:14 ET (15:14 GMT)

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