Citizens Bank Sued by CFPB for Violating Truth In Lending Act

The Consumer Financial Protection Bureau has filed suit against Citizens Bank in Providence, Rhode Island. CFPB alleges violations of the Truth in Lending Act by the bank in multiple occasions.

According to CFPB, Citizens Bank has failed to properly manage and respond to credit card disputes. Citizens automatically denied consumers’ billing error notices and claims of unauthorized use in certain circumstances. The complaint further alleges that Citizens 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.

CFPB further alleges that for several years Citizens failed to provide credit counseling referrals to consumers who called Citizens’ toll-free number designated for that purpose.

The CFPB filed its complaint in the U.S. District Court for the District of Rhode Island on January 30, 2020. CFPB’s complaint seeks, among other remedies, an injunction against defendants and the imposition of civil money penalties. If you bank with Citizens, then you should keep an eye out for further developments. The complaint is not a finding or ruling that the defendant has violated the law.

You can read the press release here and the full complaint here.