In two separate actions, the Consumer Financial Protection Bureau (CFPB) ordered Fifth Third Bank to pay $18 million to auto loan borrowers and to provide $3 million in relief for allegedly illegal credit card practices.
The CFPB teamed with the Justice Department for an auto-lending enforcement action that requires the midsize bank to change its loan pricing and auto-dealer compensation system to minimize the risks of discrimination to borrowers.
A joint investigation concluded that Fifth Third’s policies allegedly resulted in minority borrowers paying higher markups on auto loans through car dealerships. The CFPB said Fifth Third violated the Equal ...
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