Bank in CFPB Crosshairs for Allegedly Failing to Properly Manage and Respond to Customer Credit Card Disputes


  • The Consumer Financial Protection Bureau (“CFPB”) sued Citizens Bank, N.A. (“Citizens Bank”) for allegedly failing to properly manage and respond to credit card disputes and billing errors in violation of the Truth in Lending Act, the Fair Credit Billing Act, the Credit Card Accountability Responsibility and Disclosure Act, and the Consumer Financial Protection Act (“CFPA”).
  • The complaint alleges that, among other things, Citizens Bank automatically denied customers’ claims of unauthorized use of their credit cards and of billing errors. Citizens Bank also allegedly failed to apprise customers of the status of their claims and to refund finance charges and fees when it resolved unauthorized use and billing error notices in customers’ favor. In addition, Citizens Bank allegedly failed to have policies and procedures to provide credit counseling referrals to its customers.
  • The complaint seeks injunctive relief, damages and restitution, disgorgement, civil penalties, and costs.