WASHINGTON (8/13/15)--Actions by federal regulatory agencies against Citizens Bank require the bank to pay more than $37 million in civil money penalties and restitution, the agencies announced Wednesday.
The Consumer Financial Protection Bureau (CFPB), Office of the Comptroller of the Currency (OCC) and Federal Deposit Insurance Corp. (FDIC) coordinated actions against the Philadelphia-based bank for unfair and deceptive practices.
The agencies allege Citizens failed to credit consumers the full amount of deposited funds, keeping the money from deposit discrepancies when receipts did not match the actual money transferred. Roughly 475,000 accounts were affected.
An investigation found that from Jan. 1, 2008, to Nov. 30, 2013, the bank failed to take action in cases where the bank’s scanner either misread checks or a deposit slip. From January 2008 to September 2012, the mistake was not remedied if it fell below $50, and from September 2012 to November 2013 that number was $25.
Citizens Bank also implied to customers that the bank would take steps to ensure they were credited with the proper amount, but did not if the amounts fell below the previously noted thresholds.
The CFPB consent order requires Citizens to provide $11 million in refunds and pay a $7.5 million penalty; the OCC has assessed a $10 million penalty; and the FDIC has reached a settlement order for a $3 million civil money penalty and restitution amounting to roughly $5.8 million.