U.S. Bank has been ordered by the Consumer Financial Protection Bureau (CFPB) to refund about $48m to consumers harmed by illegal billing practices.
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The bank was ordered to repay about 420,000 customers who signed up for credit monitoring products and charged for services they did not receive.
These services were sold as "add-on products" for credit cards and other bank products such as mortgage loans and checking accounts.
Further, the company is paying $9m in penalties to the CFPB and the Treasury Department agency that oversees national banks.
Richard Cordray, CFPB director, said: "Today’s action will provide $48m in relief to U.S. Bank customers who were illegally charged for identity protection services they did not receive.
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By GlobalData"We have consistently warned companies about practices related to add-on products and we will do what is necessary to prevent further harm to consumers."
