National Bank Enters into Consent Orders with CFPB and OCC, Fined $36 Million

On December 19, 2023, the CFPB announced it had entered into a consent order with a national bank regarding its handling of consumers’ unemployment benefits accounts.

The bank had contracted with at least 19 states to deliver unemployment benefits to consumers. The CFPB accused the bank of violating the Consumer Financial Protection Act and Electronic Fund Transfer Act by (1) failing to provide consumers with accurate instructions as to how to unfreeze their accounts when certain anti-fraud controls were triggered and (2) failing to provide provisional​ credits pending the investigation of unauthorized transfers reported to the bank since it required additional written confirmation about the suspected unauthorized transfers from consumers.

Under the consent order with the CFPB, the bank agreed to pay $5.7 million in redress to consumers as well as a $15 million fine.

The Office of the Comptroller of the Currency separately fined the bank $15 million in a coordinated investigation.