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U.S. Bancorp says Feds weighing enforcement action on prepaid debit cards used for unemployment insurance payments

February 28, 2023

Via: Yahoo

U.S. Bancorp (USB) said in a filing Monday that the Consumer Financial Protection Bureau (CFPB) is considering a potential enforcement action against the bank as part of a previously-disclosed probe into its administration of unemployment insurance benefit prepaid debit cards during the COVID-19 pandemic. The filing was initially reported by American Banker. The move comes after Bank of America Corp. (BAC) in July was fined $100 million by the Consumer Financial Protection Bureau and $125 million by the Office of the Comptroller of the Currency for “automatically and unlawfully” freezing people’s accounts with a “faulty fraud detection program” it introduced to filter out bogus unemployment insurance claims.

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