CFPB Sues Bank Regarding Allegations of Fraud Against Benefit Recipients

​On December 6, 2024, the Consumer Financial Protection Bureau (CFPB) announced that it had filed suit against a bank subsidiary of a financial services company for allegedly disconnecting customer service calls, charging illegal ATM fees, misleading fraud victims, imposing illegal terms ​​of service on consumers seeking to stop payments, failing to investigate account problems, and forcing consumers to close accounts and incur fees. According to the CFPB, the bank’s conduct in administering a benefits program that mainly included recipients of Social Security, and other federal benefits, violated the CFPA and EFTA. ​

The​ Complaint requests the co​​urt order the bank to halt these alleged practices, to provide refunds to over ​a million affected customers, and to pay civil penalties that would go to the CFPB’s victim relief fund.