U.S. Bank refunding customers $48 million for deceptive practices
NEW YORK (CNNMoney) – One of the largest banks in the country is being forced to refund millions to customers.
U.S. Bank, which is the fifth largest in the country, was ordered to pay customers $448 million as part of the Consumer Financial Protection Bureau’s crackdown on deceptive banking practices.
It also will pay $5 million to the bureau and $4 million to the Treasury Department.
About 420,000 of U.S. Bank’s customers were unfairly charged for credit card add-on products between 2004 and 2012.
In some cases, customers were under the impression their credit was being monitored for fraud and identity theft when it wasn’t.
According to the CFPB, they ended up paying for the products without receiving the promised benefits.
U.S. Bank was marketing the service and referring interested customers to a different company, Affinion, which sold, provided and billed for the service.
“We regret that errors occurred,” said a U.S. Bank spokesman in a statement. “We will be compensating customers who did not receive full services from Affinion, and providing our apology.”
The bank severed its relationship with Affinion about two years ago when it became aware of the issues.
Those customers who took part in the add-on products will receive either a credit to their bank account or a check in the mail.
U.S. Bank is headquartered in Minneapolis and has 3,174 locations in 25 states with $389 billion in assets.