U.S. Bank Class Action: Unauthorized Accounts Opened, Consumers Claim

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.

U.S. Bank Opened Accounts Without Consent

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. 

CFPB Action Failed to Stop U.S. Bank

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.

Other Banks Face Legal Challenges

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.

• Charles Schwab is under fire for allegedly misusing customer funds in its cash sweep program to finance its acquisition of TD Ameritrade.
  
  
• Wells Fargo is embroiled in multiple lawsuits, including claims of mismanaging customer deposits for profit and accusations of supporting a Ponzi scheme that defrauded senior investors out of $300 million.
  
  
• Capital One and Bank of America face legal challenges for allegedly failing to investigate fraud claims and wrongfully denying reimbursement to victims of unauthorized charges.

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

• Lawsuit: DeSilva et al v. U.S. Bancorp, D/B/A US Bank and U.S. Bank National Association, D/B/A US Bank
• Case Number: 0:24-cv-04391-JWB-SGE
• Court: U.S. District Court for the District of Minnesota 

Plaintiffs' Attorneys

• Kate M. Baxter-Kauf and Karen Hanson Riebel (Lockridge Grindal Nauen PLLP)
• Tiffany Marko Yiatras and Francis J. “Casey” Flynn, Jr. (Consumer Protection Legal, LLC)

Have you had an account opened without your consent at U.S. Bank? Share your experience in the comments below.