Case Overview: A new class action lawsuit claims U.S. Bank continues to open accounts and process transactions without customer consent, despite previous penalties from the CFPB.
Consumers Affected: Consumers in the U.S. whose accounts were opened or whose transactions were processed without their consent by U.S. Bank.
Court: U.S. District Court for the District of Minnesota
Financial giant U.S. Bank opens accounts and processes transactions without customers’ consent, a new lawsuit alleges. The lawsuit says the bank’s actions violated consumer trust and caused financial losses, emotional stress, and significant hardship.
The lawsuit follows years of scrutiny over U.S. Bank’s account-opening practices, including a 2022 penalty from the Consumer Financial Protection Bureau for similar behavior, with consumers alleging the bank violates Minnesota Unfair and Deceptive Trade Practices Act.
Elizabeth and Nilharn DeSilva, residents of Missouri, filed the proposed lawsuit, both claiming U.S. Bank unilaterally opened two accounts in their names without their knowledge. In March 2024, the bank allegedly processed deposits totaling over $15,000 and a debit of $18.75 across these unauthorized accounts, creating confusion and forcing the plaintiffs to address the discrepancies.
The two argue that U.S. Bank’s practices unjustly benefited the bank at their and other customers’ expense. “U.S. Bank’s practice of opening bank accounts without the knowledge or consent of its customers; and processing debits or deposits without Plaintiffs’ knowledge or consent has caused significant stress to, and hardship and financial losses for, its customers,” the lawsuit states.
The lawsuit claims U.S. Bank employees opened “fake accounts” to meet sales quotas, a practice the CFPB previously condemned in a 2022 consent order. The CFPB’s investigation found evidence of systemic mismanagement, where employees exploited personal customer data to create unauthorized accounts, sometimes resulting in fees, credit score impacts, and the misuse of sensitive information.
Despite the CFPB’s $37.5 million fine and explicit guidance in May 2023 cautioning banks against such practices, U.S. Bank allegedly continued opening and managing accounts without customer consent. The CFPB warned that reopening or managing unauthorized accounts could harm customers by incurring fees, enabling unauthorized access to funds, and negatively impacting credit.
The lawsuit emphasizes that U.S. Bank should have taken preventative measures but failed to adjust its policies despite prior enforcement actions and public scrutiny.
The banking industry often comes under fire from consumers for allegedly taking advantage of its power and U.S. Bank is far from alone in facing allegations of deceptive practices.
Elizabeth and Nilharn DeSilva want to represent any person or businesses in the United States who U.S. Bank opened an account and processed a debit or a deposit to that account prior to April 7, 2024. They are suing for unjust enrichment, and conversion, and are seeking damages, restitution, and public injunctive relief.
Case Details
Plaintiffs' Attorneys
Have you had an account opened without your consent at U.S. Bank? Share your experience in the comments below.
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