On September 11, the CFPB announced that it had entered into a consent order with a national bank resolving allegations that the bank reported inaccurate information to consumer reporting companies. The bank agreed to pay nearly $28 million to resolve these allegations.
The CFPB alleged the bank violated the Fair Credit Reporting Act (FCRA) and the Consumer Financial Protection Act (CFPA) by: (1) failing to remedy credit card reporting errors it allegedly knew were incorrect; (2) sharing information with credit reporting companies arising from accounts it allegedly knew to be fraudulent; and (3) allegedly failing to conduct timely investigations and respond to consumer disputes. This was the second enforcement action against the bank, coming on the heels of a $122 million settlement in 2020 that resolved allegations of illegal overdraft practices.
Under the consent order, the bank agreed to pay $7.76 million in redress to customers in addition to a $20 million civil penalty.
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