Citizens Bank To Pay $9 Mln Penalty In Settlement To CFPB

(RTTNews) - Citizens Bank (CFG) announced on Tuesday that it will pay a penalty of $9 million to settle allegations of unlawful credit card servicing practices to the Consumer Financial Protection Bureau (CFPB).

The Citizens Bank is required to fix its credit card practices, including the treatment, handling, and resolution of billing error notices, to comply with the law. The bank is also required to pay a $9 million penalty to the CFPB's Victims Relief Fund.

The bank is also required to refund any fees with regards to valid billing error notices and unauthorized use claims, and pay a $9 million penalty to the CFPB's Victims Relief Fund.

The bank employees are prohibited from forcing customers to provide fraud affidavits, under penalty of perjury, in support of credit card claims.

Currently the stock is trading up 3.62% or $0.98 per share, to trade at $28.17 at the Nasdaq.