On Thursday, September 25, the US Bank made a federal settlement to refund nearly $48M for improper charges for credit card services that consumers did not get.

The US Bank, which is known to be the 6th biggest bank in terms of assets, made an agreement to repay nearly 42,000 customers who were charged for credit monitoring services they never received as per the Consumer Financial Protection Bureau. Aside from that, the said bank is penalized to pay $9M to CFPB with the Treasury Department, which monitored the national bank.

Like Us on Facebook

There were sanctions against the bank regarding credit card billing with add-ons where additional costs for products and services were supposed to be optional.

Richard Cordray, CFDB's director, stated that the agency will continue to address this problem to guarantee fair treatment to their customers. As agreed in April, the US Bank is obliged to pay $772M over fines and should reimburse nearly $2.9M to their consumers - the largest deal ever made in credit card add-ons. 

Other banks, including JPMorgan Chase, were required to pay $80M over fines and a reimbursement of nearly $309M. Actions which also been taken by Capital One, Discover, and American Express. 

The CFPB also said that customers signed up for products which assured them that their credit would be monitored and that they would be alerted of transactions that are potentially fraudulent. Without any written authorization, people were charged fees and interest as soon as they signed up for the service and then billed without getting any benefits from them. This gave people the impression that their credit was secured from fraud and identity theft.

To compensate, the bank intended to issue a public apology and is expected to adhere to the highest level of business ethics to guarantee quality services and products.  

Tagscfdb, US banks, jpmorgan, capital one, MasterCard, Agreement