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BumRushDaShow

(134,001 posts)
Wed Jul 10, 2024, 05:31 AM Jul 10

Fifth Third Bank illegally seized people's cars after overcharging them, feds say

Source: CBS News

Updated on: July 9, 2024 / 5:37 PM EDT


The Consumer Financial Protection Bureau (CFPB) slapped Fifth Third Bank with a $20 million fine on Tuesday for allegedly forcing auto loan customers to buy unnecessary car insurance policies, and in some cases repossessing their vehicles when they defaulted.

"The CFPB has caught Fifth Third Bank illegally loading up auto loan bills with excessive charges, with almost 1,000 families losing their cars to repossession," Director Rohit Chopra said in a statement Tuesday. "We are ordering the senior executives and board of directors at Fifth Third to clean up these broken business practices or else face further consequences."

Employees at the Ohio-based bank also illegally opened fake bank accounts for roughly 35,000 customers without their knowledge or consent under a "cross-sell" sales goal initiative from top management, the CFPB alleged. Fifth Third bank managers and branch-level employees had their performance reviews and overall employment tied to meeting sales goals of offering more products to existing customers, CPFB officials said. The fine settles a March 2020 lawsuit CFPB filed against Fifth Third which centered on the unauthorized bank accounts.

As part of the CFPB's punishment, Fifth Third must compensate the 35,000 customers who had accounts opened in their names. The bank is also banned from creating sales goals that incentivize employees for opening fake accounts. Fifth Third must pay a $15 million penalty for opening the fake accounts and another $5 million for forcing customers who already had auto insurance to get duplicative coverage, CFPB officials said.

Read more: https://www.cbsnews.com/news/fifth-third-bank-cars-repossession-fine/



Link to CFPB PRESS RELEASE - CFPB Takes Action Against Fifth Third for Wrongfully Triggering Auto Repossessions and Opening Fake Bank Accounts
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Bernardo de La Paz

(49,800 posts)
1. Fifth Third? Would that be 1 2/3? 166 percent? Where is the Fourth Second?
Wed Jul 10, 2024, 06:01 AM
Jul 10
The name "Fifth Third" is derived from the names of the bank's two predecessor companies, Third National Bank and Fifth National Bank, which merged in 1909.

The company is ranked 411th on the Fortune 500.[2] Fifth Third Bank is one of the largest banks in the United States.[3]


Largest US bank I never heard of! Joke's on me!

Conjuay

(1,595 posts)
3. there's one near me
Wed Jul 10, 2024, 07:15 AM
Jul 10

No foot traffic, empty parking lot- I always thought it was some money laundering outfit.
Guess I wasn’t far off.

GB_RN

(2,642 posts)
4. They Bought Out Suntrust Bank Here In NC Years Ago.
Wed Jul 10, 2024, 07:27 AM
Jul 10

Last edited Thu Jul 11, 2024, 01:58 PM - Edit history (1)

I was in IT then and working for Wachovia/First Union when that happened. When I questioned someone about the goofy name Fifth/Third, I was told that when they merged, the execs of the new combined bank were afraid that the name 3rd/5th Bank was too close to the nickname for bottles of alcohol (a fifth) and people would think that 3rd/5th would sound bad, as the temperance movement was in full swing during that period. So, they reversed the order and has had that goofy sounding name ever since.

FakeNoose

(33,950 posts)
9. That exactly right - I can't believe they still do these weaselly things
Wed Jul 10, 2024, 12:29 PM
Jul 10

Fifth Third Bank is out of Ohio, but about 20 years go they made a major push to open branch suburban offices in Southwestern Pennsylvania, and probably elsewhere. Whenever the banking laws got loosened or eliminated, they jumped into the fray. Well needless to say, most of those little offices are now closed or sold off. I don't think I've seen any Fifth Third branch offices anywhere in Pittsburgh, but I'm not really looking for them either.

multigraincracker

(33,197 posts)
5. I'm a customer of Fifth Third.
Wed Jul 10, 2024, 07:30 AM
Jul 10

They’ve been good for me.
I got a Bridge Loan from them when I moved from Ohio back to Michigan. I had a house payment for 2 months. Sold my house in Ohio the day I put it up for sale and paid off my new house in 2 months. So, I’ve kept them for most of my banking.
All of the tellers know me by name as I do no online banking, only inline banking. I go to the bank and stand in line.

Puppyjive

(531 posts)
6. Camping World does this
Wed Jul 10, 2024, 07:41 AM
Jul 10

We bought an rv from camping world. We have bought many rv's and this time, we were forced to purchase their insurance. I was appalled. They would not complete the deal without it. We have good insurance that has always covered our rv's. They said it was a Washington state law. The insurance company they forced down our throats was also owned by them.

Johnny2X2X

(19,964 posts)
8. Where is the concept of the victims being made whole?
Wed Jul 10, 2024, 11:27 AM
Jul 10

It seems to be ignored when a giant corporation is at fault. So they stole $billions and have to pay some fines of a fraction of what they stole. The company says these fines are saving them money by ending this.

In the meantime, people who lost their cars have to accept pennies on the dollar for their losses.

Bayard

(22,940 posts)
11. I'm waiting on a $6K refund check now from Wells Fargo
Wed Jul 10, 2024, 01:06 PM
Jul 10

Turned out, they did an, "add on service," for some kind of insurance to my mortgage in Calif. without approval from me. So, refund + interest. But, they've been stringing the process out now since January.

They are the worst of the worst. They've tried to make this sound like something their internal auditors found, but I think they got caught--again--with their hands in the cookie jar. This is the second time they've had to send me a refund for doing that.

prodigitalson

(2,610 posts)
14. I once received 100 dollars as part of a class action lawsuit against BoA
Thu Jul 11, 2024, 12:08 PM
Jul 11

that I hadn't even known I was a party in. They were apparantly running checks through people's accounts in such a way as to maximize overdraft penalties. I think the amount I received was the overdraft fees plus some interest. I left BoA for my credit union way before I got the check from the lawyers. The reason was that they had so many fees for all kinds of stuff. What I didn't know was that they were purposefully manipulating things so as to maximize overdraft fees on checks. Let's say three checks came in to the bank on the same day for (50, 30 and 35 dollars) and there were 75 dollars in the account. Instead of running the two smaller ones trough first and then applying an overdraft fee to the third one, they would run 50 dollar one first so as to apply two overdraft fees. And it wasn't as if they were just running them through randomly. They were going out of their way to cause the most overdrafts.

surrealAmerican

(11,406 posts)
10. If a person gets caught stealing from the bank, they go to jail.
Wed Jul 10, 2024, 12:38 PM
Jul 10

If the bank gets caught stealing from people, they get told to do things differently next time.

There's a lack of justice in the way we treat banks.

BaronChocula

(1,858 posts)
12. Why Elections Matter, vol. DCCVVVII
Wed Jul 10, 2024, 01:27 PM
Jul 10

The Consumer Financial Protection Bureau has been on the gopper chopping block since before it even existed. Luckily, Rapey the Clown was too incompetent to totally destroy it, but he wants another bite at the apple. Democrats see protecting Americans as the job of the president. Whether it be Russian hackers, disease, or greedy institutions, Democrats know who the enemy is. Republicans feed Americans to the wolves at no cost.

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