A U.S. regulator on Thursday fined U.S. Bancorp (USB.N) $37.5 million for mistreating customers by opening sham accounts without their permission, conduct that also occurred at larger rival Wells Fargo & Co (WFC.N).
The Consumer Financial Protection Bureau said U.S. Bancorp, the fifth-largest U.S. commercial bank, pressured employees to open unauthorized accounts by imposing sales goals and offering financial rewards for selling more products.
According to the regulator, the Minneapolis-based bank opened checking and savings accounts, credit cards and credit lines without customers' permission.
This conduct harmed customers by hurting their credit profiles and forcing them to waste time closing unauthorized accounts and obtaining refunds for improper fees.
"For over a decade, U.S. Bank knew its employees were taking advantage of its customers," CFPB Director Rohit Chopra said. "We all must do more to hold lawbreaking companies accountable when they abuse and misuse our sensitive personal data."
U.S. Bancorp did not immediately respond to requests for comment.
In September 2016, the CFPB and other authorities fined Wells Fargo $185 million for similar conduct, triggering years of scandals that cost billions of dollars and still tarnish the bank's reputation.
