Fifth Third to pay $20m in penalties and reimburse customers |
The Consumer Financial Protection Bureau has imposed a $20m penalty on Fifth Third Bank for engaging in deceptive practices, including selling unnecessary auto insurance and creating unauthorized accounts. The misconduct, which occurred between July 2011 and December 2020, led to approximately 1,000 vehicle repossessions and over $12.7m in unwarranted fees charged to 35,000 customers. In addition to the penalties, Fifth Third faces a proposed court order to eliminate sales quotas that encouraged such fraudulent activities. The bank, which operates 1,100 branches across multiple states and holds $214bn in assets, has yet to respond publicly to these charges.