Banks Raise Hackles as CFPB Enforcement Ramps Up

The CFPB’s enforcement action against Fifth Third Bank for allegedly creating fake accounts is generating grumbling from the financial industry that expected a lighter touch under Director Kathleen Kraninger.

The Fifth Third enforcement action announced March 9 comes two months after the Consumer Financial Protection Bureau filed suit against Citizens Bank NA for alleged failures in handling credit card disputes.

Making matters worse, in the eyes of banks and their lobbyists, is the fact that the Fifth Third action relied on the bureau’s much-maligned power to rein in abusive acts or practices.

“My belief is that, from an industry perspective, ...