CFPB Looks Into US Bancorp’s Consumer Sales Practices
The Consumer Financial Protection Bureau (CFPB) is looking into some of U.S. Bancorp’s consumer sales practices, according to the financial services company’s 10-Q filed this week. U.S. Bancorp said in the filing that it has responded to the CFPB and continues responding to the Bureau.
The company noted in the filing that it continually faces “examinations, inquiries and investigations” in areas of increased regulatory scrutiny like consumer protection, third-party risk management, risk management and compliance.
“The Company is cooperating fully with all pending examinations, inquiries and investigations, any of which could lead to administrative or legal proceedings or settlements. Remedies in these proceedings or settlements may include fines, penalties, restitution or alterations in the Company’s business practices (which may increase the Company’s operating expenses and decrease its revenue),” U.S. Bancorp stated.
Separately, the CFPB found in its Consumer Response Annual Report for 2020 that there were approximately 542,300 complaints in 2020. That’s a nearly 54 percent rise from 2019 when there were 352,400 complaints.
CFPB Acting Director Dave Uejio said in a March press release that the rise in the complaints was directly connected with the pandemic. “The pandemic has been among the most disruptive long-term events we will see in our lifetimes,” he said. “Not surprisingly, the shockwaves it sent across the planet were felt deeply in the consumer financial marketplace. Consumer complaints provide the CFPB with an important real-time window into where consumers encounter problems in the marketplace. The CFPB expects companies to respond to these concerns and that consumers receive responses from companies that address the issues consumers raise in their complaints.”
Nearly six in 10 – or 58 percent – of the complaints were connected with credit and consumer reporting, followed by debt reporting at 15 percent, credit cards at 7 percent, checking or savings at 6 percent and mortgage complaints at 5 percent. In total, there ended up being 32,100 complaints referencing the coronavirus last year.