CFPB Files Suit Against National Bank for Alleged TILA Violations

On January 30, 2020, the CFPB filed a complaint against a national bank in the U.S. District Court for the District of Rhode Island. The complaint alleges that the bank violated the Truth in Lending Act (TILA), 15 U.S.C. § 1601 et seq., TILA’s implementing Regulation Z, 12 C.F.R. pt. 1026, and the Consumer Financial Protection Act (CFPA), 12 U.S.C. §§ 5536(a)(1)(A), 5481(14), through its servicing of credit cards.

According to the CFPB, the bank automatically denied consumers’ claims of billing errors or unauthorized use if those consumers did not provide fraud affidavits and agree to testify as witnesses. Additionally, the bank allegedly failed to send consumers acknowledgement letters or denial notices in response to billing error notices. The complaint further alleges that when the bank resolved claims of billing errors or unauthorized use in consumers’ favor, it did not refund the finance charges and fees associated with the charge. Finally, the CFPB alleges that the bank failed to provide credit counseling referrals to consumers who called the bank’s toll-free credit counseling referral n​umber.

In addition to injunctive relief, the CFPB is also seeking restitution, consumer refunds, and civil money penalties.

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