A bank created fake accounts, forced clients into unnecessary car insurance and repossessed vehicles when they didn't pay. Now it has agreed to $20 million in penalties

Fifth Third Bank has agreed to pay $20 million in penalties imposed by the Consumer Financial Protection Bureau (CFPB). The settlement is a result of a CFPB investigation into the bank’s auto insurance practices and a lawsuit filed by the agency in 2020 regarding the creation of fake customer accounts. The bank was found to have illegally charged customers for unnecessary auto insurance policies, resulting in harm to over 35,000 customers and vehicle repossession for more than 1,000 of them. In addition, the CFPB has filed a proposed court order requiring the bank to pay $15 million in penalties for practices incentivizing employees to create fake customer accounts. The order also prohibits the bank from setting sales goals that encourage fraudulent account openings. This settlement concludes the litigation and investigation into Fifth Third Bank’s sales practices.