On March 9, 2020, the Consumer Financial Protection Bureau (CFPB) filed a lawsuit against Fifth Third Bank (Fifth Third) for Unfair, Deceptive or Abusive Acts or Practices (UDAAP) and violating Truth in Lending (TIL) and Truth in Savings (TIS). The CFPB accuses Fifth Third, with over $150 billion in assets, of opening accounts without consumer’s consent, enrolling consumers in unauthorized online-banking services and activating unauthorized lines of credit on consumer’s accounts. According to the CFPB, for years Fifth Third committed these violations in part because of its cross-selling strategy and incentive compensation program. Cross-selling and incentive compensation are not inherently harmful, but they can be if the programs are not sufficiently implemented and monitored. The CFPB seeks to stop the alleged misconduct, provide restitution for affected consumers and impose a civil money penalty.

Author

John Zasada, JD, CAMS – Compliance Consulting Director, Financial Institutions Group. John can be reached at zasada@doeren.com.