In 2015, the CFPB, along with the Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency, fined Citizens Bank and its ownership group RBS Citizens Financial Group, Inc., for “pocketing money from customers whose deposit slip totals didn’t match the amounts deposited by the institution.” The bank was ordered to pay restitution and penalties, $18.5 million to the CFPB and additional fees to the other regulators.
- “When the bank’s scanners misread either deposit slips or deposited checks, or if the totals on deposit slips did not equal the actual deposit totals,” between January 1, 2008 and November 30, 2013, “Citizens Bank did not take action to fix the mistake if it fell below a certain dollar amount.” “When the total on the deposit slip was lower than the actual deposit amount, the bank credited the customer for the lower amount and kept the difference” in some cases. For instance, if a customer were to deposit $15 but only $10 appeared on the deposit slip, Citizens Bank would pocket the unclaimed $5 and not provide notification to the customer. [Tina Orem, “Citizens Bank Fined for Shorting Deposits,” Credit Union Times, 08/12/15]
- The consent order required Citizens Bank “to refund approximately $11 million to customers and pay a $7.5 million penalty. The FDIC has also ordered Citizens Bank to pay restitution and a $3 million civil penalty. In addition, the OCC ordered the bank to pay restitution and a $10 million civil penalty. In total, Citizens Bank must refund about $11 million to customers and pay $20.5 million in federal penalties.” [Tina Orem, “Citizens Bank Fined for Shorting Deposits,” Credit Union Times, 08/12/15]
Inactive or Resolved