Regional Bank to Pay $20 Million Over Fake Accounts, Insurance Coverage Allegations

The bank is required to compensate roughly 35,000 customers allegedly harmed by its auto insurance practices.

The Fifth Third Bank building in Cincinnati, Ohio, in an undated file photo. Al Behrman/AP Photo

Fifth Third Bank, a consumer bank in the Midwest, has agreed to pay $20 million to settle allegations that it created fake accounts in customers’ names and imposed unnecessary car insurance on customers, leading to vehicle repossessions in some cases, the Consumer Financial Protection Bureau (CFPB) announced in a July 9.

The CFPB said in a press release that it had taken action against “repeat offender Fifth Third Bank for a range of illegal activities” resulting in $20 million in penalties.“ In addition, the bank must also pay ”redress to approximately 35,000 harmed consumers, including about 1,000 who had their cars repossessed.”