US Bank Settles $15 Million Penalty for Deceptive Practices Against Customers.
A prominent US-based bank is making headlines as it agrees to pay a substantial $15 million penalty following accusations of engaging in deceptive practices against its customers for a minimum of ten years.
According to the Office of the Comptroller of the Currency (OCC), MUFG Union Bank, which has since been acquired by U.S. Bancorp, had allegedly promised customers a range of fee waivers and discounts. However, it failed to fulfill these commitments, leaving account holders without the benefits they were assured.
The customers affected by these deceptive practices primarily held deposit accounts, rented safe deposit boxes, or were part of a private banking program. The OCC acknowledges that Union Bank voluntarily disclosed these issues, although the bank neither admitted nor denied the allegations made by the regulatory agency.
The OCC’s statement emphasizes that Union Bank’s conduct violated Section 5 of the FTC Act, constituting deceptive practices that were part of a broader pattern of misconduct, ultimately benefiting the bank financially. Union Bank has taken responsibility by identifying these legal violations, compensating affected customers, and implementing appropriate remedial measures to rectify these breaches.
It is important to note that this settlement serves as the resolution to the civil money penalty proceedings initiated by the OCC against the bank, stemming from the aforementioned violations outlined in the Comptroller’s Findings.
In June 2021, prior to the acquisition by U.S. Bancorp, MUFG Union Bank reported assets amounting to $133.2 billion. U.S. Bancorp has clarified that the allegations against Union Bank pertain to incidents predating the acquisition, and Union Bank has already provided reimbursements to the affected customers.
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