Citizens Financial penalized for unadjusted deposit errors
The Consumer Financial Protection Bureau, Office of the Comptroller of the Currency and the Federal Deposit Insurance Corporation have announced enforcement orders against Citizens Financial Group, Inc. (formerly known as RBS Citizens Financial Group), Providence, RI, and its two bank subsidiaries, Citizens Bank, N.A. (f/k/a RBS Citizens, N.A.), Providence, RI and Citizens Bank of Pennsylvania (Philadelphia), for failing to credit customers the full amounts of their deposited funds. The agencies found that the bank kept money from deposit discrepancies when deposit slips did not match actual deposit totals from January 1, 2008, to November 30, 2013, and mislead customers by implying that the bank would ensure that customers were credited with the correct deposit amount, when its practice was not to correct deposit inaccuracies under a $50 (through September 2012) or $25 (September 2012 to November 2013) threshold. The agencies ordered the holding company and banks to make restitution of approximately $11 million to affected customers, and to pay civil money penalties or fines totaling $20.5 million.
- CFPB press release and consent order against the holding company and both banks, with $7.5 million civil money penalty to the Bureau's Civil Penalty Fund
- FDIC press release and consent order against Citizens Bank of Pennsylvania for restitution to affected consumers and businesses, with $3 million civil money penalty
- OCC press release, consent order and consent order for civil money penalty against Citizens Bank, N.A. for restitution to affected consumers and businesses, with $10 million civil money penalty