On December 6, 2024, the Consumer Financial Protection Bureau (CFPB) announced that it had filed suit against a bank subsidiary of a financial services company for allegedly disconnecting customer service calls, charging illegal ATM fees, misleading fraud victims, imposing illegal terms of service on consumers seeking to stop payments, failing to investigate account problems, and forcing consumers to close accounts and incur fees. According to the CFPB, the bank’s conduct in administering a benefits program that mainly included recipients of Social Security, and other federal benefits, violated the CFPA and EFTA.
The Complaint requests the court order the bank to halt these alleged practices, to provide refunds to over a million affected customers, and to pay civil penalties that would go to the CFPB’s victim relief fund.
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