Monday, October 23

Hall of Shame: CFPB Orders Citizens Bank to Pay $18.5 Million for Failing to Credit Full Deposit Amounts

The job of the most honest seller is to sell you, not to give you reasons to buy from a competitor. That over-riding reality drives the free-enterprise system, and places a responsibility on you.

FoolProof's Hall of Shame is here to remind you why a healthy dose of skepticism should rule your decisions before dealing with anyone who wants to touch your money or your general welfare.

August 12, 2015


"Citizens Bank regularly denied customers the full credits of their deposits when there were discrepancies between deposit slips and the actual money transferred into the bank," said CFPB Director Richard Cordray. "The bank chose to ignore these discrepancies and harmed many consumers by pocketing the difference."


Citizens Bank:

  • Failed to credit consumers the full amount of their deposits
  • Falsely claimed that it would verify deposits

The Consumer Financial Protection Bureau's (CFPB) order requires that Citizens Bank:

  • Pay approximately $11 million in redress to victims
  • End all violations of federal consumer financial law in connection with deposit discrepancies
  • Pay $7.5 million civil penalty