Professional Documents
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Blank Letter Bank Letter
Blank Letter Bank Letter
The Bureau has jurisdiction over this matter under §§ 1053 and 1055 of the CFPA, 12
U.S.C. §§ 5563 and 5565. By issuing credit cards to consumers without the consumers’
consent and not in response to an oral or written request or application for the card or as a
renewal of, or substitute for, an accepted credit card, ( Insert Your Bank Here) violated
“( Insert Your Bank Here) “means ( Insert Your Bank Here), N.A., and its successors
and assigns.
( Insert Your Bank Here) is a “covered person” under 12 U.S.C. § 5481(6). ( Insert Your
Bank Here) Violations of Law Regarding Online Advertisements of Rewards Cards and
Sign-Up Bonuses
It was ( Insert Your Bank Here) practice to obtain consumer reports in the course of
considering consumers for new credit cards. ( Insert Your Bank Here) used or obtained
consumer reports to consider consumers for new credit cards even when the consumers
had not applied for or did not want the products and where ( Insert Your Bank Here) did
( Insert Your Bank Here) has not addressed a root cause of Relevant Account-Opening
center employees primarily responsible for the sale of consumer credit card accounts as
of January 1, 2023.
( Insert Your Bank Here) has not addressed a root cause of Relevant Account-Opening
goals both for compensation incentives and for performance management for financial
center employees primarily responsible for the sale of consumer credit card accounts as
of January 1, 2023.
Opening Notice Period and who have not previously received redress.
“Affected Consumers” means any consumer subjected to any of the Improper Sales
Practices. ( Insert Your Bank Here) employees submitted applications for and obtained
any financial product or service that is described in one or more categories under— (A)
paragraph (15) of 12 U.S.C. § 5481 and is offered or provided for use by consumers
primarily for personal, family, or household purposes; or (B) clause (i), (v), (vii), (ix), or
5481(5)(A).
consumer’s consent.
Section 604(f) of FCRA mandates that consumer reports be used or obtained only for
Under FCRA, a “person shall not use or obtain a consumer report for any purpose
unless—(1) the consumer report is obtained for a purpose for which the consumer report
The authorized purposes specified in FCRA include consumer reports furnished “in
connection with a credit transaction involving the consumer on whom the information is
provide to a consumer any financial product or service not in conformity with Federal
consumer financial law, or otherwise commit any act or omission in violation of a federal
By violating TILA, and FCRA, ( Insert Your Bank Here) committed acts or omissions in
violation of Federal consumer financial laws. Accordingly, ( Insert Your Bank Here)
( Insert Your Bank Here) and its officers, agents, servants, and employees and attorneys,
who have actual notice of this Consent Order, in connection with the Relevant Account-
Opening Practices, whether acting directly or indirectly, may not violate sections 1031
and 1036 of the CFPA, 12 U.S.C. §§ 5531 and 5536; TILA, 15 U.S.C. § 1601 et seq., and
also describe the redress amounts ( Insert Your Bank Here) will provide to Account-
Opening Affected Consumers and include and describe procedures for the ( Insert Your
Bank Here) to support and provide to the Bureau any determination made by the ( Insert
Consumers is impracticable.
By opening unauthorized deposit accounts and engaging in acts of simulated funding, (
Insert Your Bank Here) caused and was likely to cause substantial injury to consumers
that was not reasonably avoidable, because it occurred without consumers’ knowledge,
Thousands of ( Insert Your Bank Here) employees engaged in Improper Sales Practices
to satisfy sales goals and earn financial rewards under ( Insert Your Bank Here)
( Insert Your Bank Here) employees engaged in “simulated funding.” To qualify for
incentives that rewarded bankers for opening new accounts that were funded shortly after
opening, ( Insert Your Bank Here) employees opened deposit accounts without
consumers’ knowledge or consent and then transferred funds from consumers’ authorized
accounts to temporarily fund the unauthorized accounts in a manner sufficient for the
( Insert Your Bank Here) employees requested debit cards and created personal
consent.
Therefore, ( Insert Your Bank Here) engaged in “unfair” and “abusive” acts or practices
that violate §§ 1031(c)(1), (d)(1), (d)(2)(B), and 1036(a)(1)(B) of the CFPA. 12 U.S.C.
Withheld cash and points reward on credit cards: To compete with other credit card
companies, ( Insert Your Bank Here) targeted individuals with special offers of cash and
points when signing up for a credit card. ( Insert Your Bank Here) illegally withheld
promised credit card account bonuses, such as cash rewards or bonus points, to tens of
thousands of consumers. The bank failed to honor rewards promises for consumers who
bonuses to consumers due to the failure of ( Insert Your Bank Here)’s business processes
and systems.
to reach now disbanded sales-based incentive goals and evaluation criteria, ( Insert Your
Bank Here) employees illegally applied for and enrolled consumers in credit card
Bank Here) illegally used or obtained consumers’ credit reports, without their permission,
to complete applications. Because of ( Insert Your Bank Here)’s actions, consumers were
charged unjustified fees, suffered negative effects to their credit profiles, and had to
The Bureau has concluded that ( Insert Your Bank Here) acts or practices violated the
Truth in Lending Act (TILA), 15 U.S.C. § 1601 et seq., and its implementing regulation,
(FCRA), 15 U.S.C. §§ 1681b(f); and the Consumer Financial Protection Act of 2010
(CFPA), 12 U.S.C. §§ 5531 and 5536. The Bureau issues this Consent Order under §§
IT IS FURTHER ORDERED that: In the event of any default on ( Insert Your Bank
Here) obligations to make payment under this Consent Order, interest, computed under
28 U.S.C. § 1961, as amended, will accrue on any outstanding amounts not paid from the
date of default to the date of payment, and will immediately become due and payable.
Under 31 U.S.C. § 7701, ( Insert Your Bank Here) , unless it already has done so, must
furnish to the Bureau its taxpayer-identification numbers, which may be used for
purposes of collecting and reporting on any delinquent amount arising out of this Consent
Order.
( Insert Your Bank Here) must notify the Bureau of any development that may affect
compliance obligations arising under this Consent Order, including but not limited to a
dissolution, assignment, sale, merger, or other action that would result in the
emergence of a successor company; the creation or dissolution of a subsidiary, parent,
or affiliate that engages in any acts or practices subject to this Consent Order; the
filing of any bankruptcy or insolvency proceeding by or against ( Insert Your Bank Here)
; or a change in ( Insert Your Bank Here) name or address. ( Insert Your Bank Here)
must provide this notice, if practicable, at least 30 days before the development, but in
(( Insert Your Bank Here) , as defined below) and determined that it has engaged in the
following acts and practices: (1) opened unauthorized deposit accounts for existing
customers and transferred funds to those accounts from their owners’ other accounts, all
without their customers’ knowledge or consent; (2) submitted applications for credit
consent; (3) enrolled consumers in online banking services that they did not request; and
(4) ordered and activated debit cards using consumers’ information without their
knowledge or consent. The Bureau has concluded that such acts violate §§ 1031 and
5531 and 5536(a)(1)(B). Under §§ 1053 and 1055 of CFPA, 12 U.S.C. §§ 5563, 5565, the
The Bureau has jurisdiction over this matter under §§ 1053 and 1055 of the CFPA, 12