U.S. Bancorp charged with preventing workers from getting unemployment during COVID

The Consumer Financial Protection Bureau and the Office of the Comptroller of the Currency on Tuesday said they fined U.S. Bancorp
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a combined $36 million for how the bank handled unemployment payments during the COVID-19 pandemic. The CFPB said the bank froze tens of thousands of accounts in a move that kept people from collecting their unemployment benefits. The CFPB said the bank did not provide provision account credits while investigating money transfers that were potentially unauthorized. It also did not provide customers with a “reliable and quick way” to restore access to their accounts. The CFPB’s $21 million fine against U.S. Bancorp includes a $15 million penalty and a $5.7 million payment to consumers that were harmed by its actions. Separately, the OCC said it assessed a $15 million penalty to U.S. Bancorp for breaking the law in its administration of a prepaid card program to distribute unemployment benefits. “From August 2020 through at least March 2021, the bank had deficient processes for permitting consumers to regain access to their unemployment benefits in a reasonable timeframe following account freezes,” the OCC said. The OCC said the bank committed to provide a remedy to harmed consumers. U.S. Bancorp’s stock was up by 0.4% in recent trading.