Fifth Third Bank, a consumer bank in the Midwest, has agreed to pay $20 million to settle allegations that it created fake accounts in customers’ names and imposed unnecessary car insurance on customers, leading to vehicle repossessions in some cases, the Consumer Financial Protection Bureau (CFPB) announced in a July 9.
The CFPB said in a press release that it had taken action against “repeat offender Fifth Third Bank for a range of illegal activities” resulting in $20 million in penalties.“ In addition, the bank must also pay ”redress to approximately 35,000 harmed consumers, including about 1,000 who had their cars repossessed.”
The $20 million penalty was issued for two separate charges: one related to the bank’s auto finance servicing activities and the other concerning its sales practices.
