From:Â RegTech Analyst
The Consumer Financial Protection Bureau (CFPB) has sued Citizens Bank for allegedly violating rules about properly managing and responding to credit card disputes.
The government body alleged that the bank, which has 1,100 branches across the US and has $162.7bn in assets, automatically denied consumers’ billing error notices and claims of unauthorised use in certain circumstances.
Moreover, the CFPB claimed that Citizens Bank had failed to fully refund finance charges and fees when consumers asserted meritorious disputes or fraud claims, and failed to send consumers required acknowledgement letters and denial notices in response to billing error notices.
The CFPB also accused the Rhode Island bank of having violated the Truth in Lending Act (TILA) and Regulation Z by failing to provide credit counselling referrals to consumers who called Citizens’ toll-free number designated for that purpose.
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