Bank Settles CFPB Charges for Failure to Address Credit Card Disputes

A bank settled CFPB charges for failing to respond to customers’ credit card disputes and fraud claims.

In a Stipulated Final Judgment and Order filed in the U.S. District Court for the District of Rhode Island, the Court found that the bank violated the Truth in Lending Act and Regulation Z. The Court found that the bank failed to (i) appropriately address billing error notices or unauthorized use by automatically denying the claims; (ii) credit customer accounts to cover the finance charges or fees incurred as a result of the unauthorized use and billing errors; (iii) provide consumers with the proper acknowledgement that the unauthorized charges had been made; and (iv) disclose required credit counseling information requested by consumers.

To settle the charges, the bank agreed to (i) pay a $9 million civil money penalty to the CFPB’s victim relief fund and (ii) comply with the remedial practices set forth in the Order.