Fifth Third enters into settlement agreement with CFPB

Fifth Third Bank announced t has reached a comprehensive settlement agreement with the Consumer Financial Protection Bureau to resolve both its litigation related to sales practices and an investigation into the Bank’s auto finance servicing activities. Fifth Third has agreed to pay a $15M fine for sales practices and a $5M fine for auto finance servicing activities. This agreement requires Fifth Third to maintain existing policies and develop compliance plans. The Bank will also work with the Bureau’s supervisory arm to develop and implement remediation plans for any customers whom the Bank has not already remediated for these issues. The settlement resolves disputed sales practices issues related to a limited number of accounts opened beginning in 2010 and ending in 2016. The settlement also addresses the CFPB’s concerns about an auto collateral protection insurance program that Fifth Third voluntarily discontinued in January 2019. “Today’s settlement concludes both the sales practices litigation with the CFPB, and its separate investigation into certain auto finance servicing activities related to a collateral protection insurance program that the Bank shut down in 2019 before the CFPB began its investigation,” said Susan Zaunbrecher, chief legal officer of Fifth Third. “We have already taken significant action to address these legacy matters, including identifying issues and taking the initiative to set things right. We consistently put our customers at the center of everything we do. We are pleased to put these historical matters behind us so we can continue to focus on creating sustainable long-term value for our shareholders, customers, employees and in our communities.”