U.S. Bank Slapped with $36 Million Fine for Pandemic Misconduct
U.S. Bank has agreed to pay $36 million in penalties after being accused of illegally blocking unemployed individuals from accessing their pandemic-related benefits. The bank froze tens of thousands of prepaid card accounts without providing a way for users to regain access, citing expanded antifraud controls. The U.S. Office of the Comptroller of the Currency and the Consumer Financial Protection Bureau found that U.S. Bank demanded burdensome paperwork and blocked access to accounts, leaving consumers without their frozen benefits. The bank will pay $21 million in penalties and redress to consumers, with an additional $15 million penalty assessed by the OCC.