CFPB sues Citizens Bank for allegedly improperly handling credit card disputes
January 31, 2020
Citizens Bank is being sued by the Consumer Financial Protection Bureau for allegedly violating the federal Truth in Lending Act and other consumer protection laws by failing to properly manage and respond to credit card disputes.
The lawsuit alleges that Citizens automatically denied consumers’ billing error notices and claims of unauthorized use in some cases. It also alleges that Citizens, the second-largest retail bank in the Pittsburgh region, failed to fully refund finance charges and fees when consumers had valid disputes or fraud claims. In addition, the CFPB charges Citizens failed to send consumers required acknowledgement letters and denial notices in response to billing error notices.
The lawsuit also charge Citizens failed to provide credit counseling referrals to consumers who called Citizens’ toll-free number to get a referral.
The CFPB filed its lawsuit Thursday in the U.S. District Court in Rhode Island, and it seeks an injunction and civil monetary penalties.
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