U.S. Bank Hit with $36 Million Fine for COVID-19 Misconduct

The Consumer Financial Protection Bureau (CFPB) has ordered U.S. Bank to pay nearly $21 million for blocking out-of-work consumers from accessing unemployment benefits during the COVID-19 pandemic. U.S. Bank froze tens of thousands of accounts and failed to provide a reliable and quick way for consumers to regain access. The bank also neglected to provide provisional account credits while investigating unauthorized transfers. The CFPB and the Office of the Comptroller of the Currency (OCC) coordinated their investigations, resulting in U.S. Bank being fined $15 million by each agency. U.S. Bank is required to pay $5.7 million to affected consumers and a $15 million penalty.