A major US bank, Fifth Third Bank, is facing a hefty $20 million fine for some seriously shady business practices. The Consumer Financial Protection Bureau (CFPB) says the bank ripped off thousands of customers, including illegally taking away their cars.
What Did Fifth Third Do?
- Forced extra insurance: The bank made customers buy extra car insurance even if they already had coverage, charging them unnecessary fees.
- Repossessed cars: When customers couldn’t keep up with the extra fees, the bank repossessed their cars. Almost 1,000 people lost their vehicles this way.
- Fake accounts: To boost sales numbers, employees opened fake accounts in customers’ names without their permission.
CFPB Takes Action
The CFPB is not messing around. They’re making Fifth Third pay a $5 million fine for the insurance scheme and another $15 million for the fake accounts. They also want the bank to:
- Refund customers: Fifth Third needs to reimburse the 35,000 customers who were harmed by their practices.
- Stop pushing sales: The bank can’t offer employees bonuses for opening unauthorized accounts anymore.
CFPB Director Rohit Chopra had some strong words for Fifth Third:
“We are ordering the senior executives and board of directors at Fifth Third to clean up these broken business practices or else face further consequences.”
This is a big win for consumers and a clear message that the CFPB is serious about protecting people from predatory financial practices.
