U.S. Bank Fined Millions After Investigation Finds It Illegally Opened Accounts For Customers

U.S. Bank has been fined millions after it was found that its employees were illegally opening accounts for customers without their permission.

Over the course of a decade, American bank holding company U.S. Bank opened numerous bank accounts for customers who knew nothing about it. After a five-year-long investigation done by the Consumer Financial Protection Bureau (CFPB), the bureau fined the bank $37.5 million. The money will then be distributed to customers who were affected.

“For over a decade, U.S. Bank knew its employees were taking advantage of its customers by misappropriating consumer data to create fictitious accounts,” CFPB Director Rohit Chopra said in a statement Thursday, CBS News reports. “We all must do more to hold lawbreaking companies accountable when they abuse and misuse our sensitive personal data.”

U.S. Bank employees would reportedly use customers’ private information to access their credit reports to open bank accounts, credit lines, credit cards and more. And U.S. Bank knew it was happening the entire time, CBS News reports. The bank employees’ actions led to customers’ losing points on their credit scores. On top of that, customers had to go through the process of closing the accounts and seeking reimbursement for any account charges.

It was discovered that bank employees were responsible for obtaining sales goals and were able to receive monetary rewards through an incentive program.