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Friday, April 3, 2020

Consumer protection agency sues bank over allleged failures to right unauthorized use, billing errors

Federal Court

By John Breslin | Feb 13, 2020

Credit card tech

PROVIDENCE, R.I. (Legal Newsline) - A federal consumer protection agency has filed suit against a bank over claims it failed to investigate and reimburse credit card holders following unauthorized use and billing errors.

The Bureau of Consumer Financial Protection (BCFP) is accusing Rhode Island-headquartered Citizens Bank of violations of the Consumer Financial Protection and Truth in Lending acts. The suit was filed Jan. 30 in the U.S. District Court for the District of Rhode Island.

According to the suit, Citizens Bank, between 2010 and 2015, "routinely" failed to refund the full amount owed, including charges and fees, after the customer filed a billing error or unauthorized use notice.

The suit further claims that Citizens denied consumers’ unauthorized use and billing error claims because of the failure to return a fraud affidavit, which included a promise by the consumer to appear as a witness in court and to sign the document on penalty of perjury.

BCFP is asking the court to bar Citizens from "committing future violations" of the act, award an amount to redress injury to consumers, including damages, restitution and refunds, and to order "disgorgement against Citizens of any ill-gotten gains."

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Organizations in this Story

Consumer Financial Protection Bureau