OCC Assesses $15 Million Penalty Against U.S. Bank for Unfair Practices

WASHINGTON—The Office of the Comptroller of the Currency (OCC) today assessed a $15 million civil money penalty against U.S. Bank, National Association, Cincinnati, Ohio, for violations of law relating to the bank’s administration of a prepaid card program to distribute public unemployment insurance benefit payments.

The OCC found that the bank engaged in unfair practices in violation of Section 5 of the Federal Trade Commission Act. 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. In response to supervisory concerns, the bank committed to remediate harmed consumers.

The OCC’s civil money penalty is separate from, but coordinated with, the Consumer Financial Protection Bureau (CFPB), which issued an enforcement order today against the bank. The CFPB ordered the bank to pay a $15 million civil money penalty and redress harmed consumers. The OCC penalty will be paid to the U.S. Treasury.

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