CFPB orders bank to pay millions in penalties

by Justin da Rosa14 Aug 2015
Regulators have ordered Citizen Bank to pay $18.5 million for applying the crudest calculations to client accounts and pocketing the change.

“Citizens Bank regularly denied customers the full credits of their deposits when there were discrepancies between deposit slips and the actual money transferred into the bank,” CFPB Director Richard Cordray said in a release.

According to Cordray, the bank ignored inconsistencies in transfer amounts and account balances and chose to pocket the difference.

The fines include $11 million in refunds and $7.5 million in penalties. It is unclear how many of those depositor affected also have their mortgage with the bank.

The news comes a mere week after a J.D. Power client satisfaction study ranked Citizens Bank second in mortgage servicing satisfaction.

“Delivering top-notch customer service is a key component of our commitment to provide customers with the best possible banking experience, and it is gratifying that we have been recognized by J.D. Power,” said Brad Conner, vice chairman and head of consumer banking for Citizens Bank said in a release at the time. “These findings reflect the investments we’ve made not only in our mortgage business, but across the entire bank, to help our customers bank better.”

In that same release, the bank boasted that it was “designated one of the Most Reputable Banks in the country by American Banker/Reputation Institute in 2015.”
 

COMMENTS

  • by Half Empty Nowadays | 8/20/2015 4:37:06 PM

    You cannot trust any of those ranking statistics because banks, just like Chase Bank, set those up to be unfair. Chase ties employee compensation to the survey responses that are used for those rankings and they add many questions to the survey and tell the employee if you do not get a 90% or higher on these certain questions, your bonus goes down. So basically, when the customer is dissatisfied, they are steered to answer the "other" questions honestly but to answer those particular questions based on how happy they were with the employee. Since most customers like the employee but do not like the bank practices, they will rate the employee questions high and rate the "other" questions low and write all the negative comments in the comment section thinking that it is making a difference.

    Then when the rankings come out, they are not accurate and have been guided. It's all a bunch of BS and politics. The banks have no problem being sleezy and finding ways to get what they want to distort the facts. As long as they are making all the money, they do not care about YOU the customer.

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