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 bank said it’s cooperating with the regulators. 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. U.S. Bancorp stock is up 9.1% in 2023, compared to a 3.7% increase by the S&P 500 SPX so far this year.
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