On September 25, 2014, the OCC announced a $4 million civil monetary penalty against US Bank National Association in Cincinnati, Ohio and ordered restitution of $47.9 million to more than 420,000 consumer accounts. The OCC enforcement action, made in coordination with the Consumer Financial Protection Bureau ("CFPB"), found that the bank's practices violated the Federal Trade Commission Act, prohibiting unfair acts or practices. Among those consumers eligible for restitution are those who were unfairly billed for identity theft protection products marketed by the bank and sold by its vendor.
The restitution will include the full amount paid for these products, plus any associated over-limit fees and finance charges. In addition, the OCC order requires the bank to improve its governance of third-party vendors associated with "add-on" consumer products and to submit to the OCC a third-party management program plan for add-on consumer products marketed or sold by the bank or its vendors. In the coordinating action, the CFPB issued a separate order against the bank based on unfair billing for identity theft protection products. The CFPB order required the bank to pay a $5 million civil money penalty and ordered restitution to harmed consumers.
The full text of the OCC enforcement order is available at: http://occ.gov/static/enforcement-actions/ea2014-115.pdf.
The full text of the CFPB consent order is available at: http://files.consumerfinance.gov/f/201409_cfpb_consent-order_us-bank.pdf.
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