In its quarterly filings with the Securities and Exchange Commission, U.S. Bancorp acknowledged that it was in continued conversations with the Consumer Financial Protection Bureau (CFPB) regarding potential enforcement action against the bank.
This comes one year after U.S. Bancorp announced that the CFPB was investigating the bank’s consumer sales practices for potential violations of federal law.
“The company is continually subject to examinations, inquiries and investigations in areas of heightened regulatory scrutiny, such as compliance, risk management, third-party risk management and consumer protection,” the quarter filing read. “For example, the Consumer Financial Protection Bureau has been investigating certain of the company’s consumer sales practices and is now considering a potential enforcement action. The company is engaged in discussions with the CFPB on this matter and does not believe an enforcement action is warranted, but there can be no assurance that these discussions will result in a resolution.”
The full scope and details of the investigation by the CFPB have not yet been disclosed, but the statement in the bank’s quarterly report suggest that it is preparing for the agency to take some level of enforcement action in the near future.
“The company is cooperating fully with all pending examinations, inquiries and investigations, any of which could lead to administrative or legal proceedings or settlements,” the filing continued. “Remedies in these proceedings or settlements may include fines, penalties, restitution or alterations in the company’s business practices (which may increase the company’s operating expenses and decrease its revenue).”