Fifth Third Bank received a $20 million fine for opening unauthorized accounts and adding auto insurance without consent, as stated by the Consumer Financial Protection Bureau on Tuesday.
According to the CFPB, the bank must pay the penalty and compensate 35,000 affected customers, with 1,000 facing car repossession.
CFPB Director Rohit Chopra condemned Fifth Third Bank’s actions, emphasizing the need for reform to prevent further consequences.
The $20 million fine includes $15 million for the fake accounts and $5 million for the unnecessary insurance policies. The bank is also prohibited from incentivizing fraudulent practices.
In a statement, Fifth Third Bank pledged to rectify past issues under CFPB supervision.
Fifth Third Bank, headquartered in Cincinnati, operates in 12 states and holds assets worth around $214 billion.
Notably, the bank has previously been fined by the CFPB for discriminatory auto loan and credit card practices.
