Fifth Third Enters Into Settlement Agreement With CFPB, Has Agreed To Pay A $15M Fine For Sales Practices And A $5M Fine For Auto Finance Servicing Activities.

Author: Benzinga Newsdesk | July 09, 2024 11:22am

Fifth Third Bank announced today it has reached a comprehensive settlement agreement with the Consumer Financial Protection Bureau (CFPB) to resolve both its litigation related to sales practices and an investigation into the Bank's auto finance servicing activities. Fifth Third has agreed to pay a $15 million fine for sales practices and a $5 million fine for auto finance servicing activities. This agreement requires Fifth Third to maintain existing policies and develop compliance plans. The Bank will also work with the Bureau's supervisory arm to develop and implement remediation plans for any customers whom the Bank has not already remediated for these issues. The settlement resolves disputed sales practices issues related to a limited number of accounts opened beginning in 2010 and ending in 2016. The settlement also addresses the CFPB's concerns about an auto collateral protection insurance program that Fifth Third voluntarily discontinued in January 2019.

Posted In: FITB