Citizens Bank To Pay $9M Penalty For Unlawful Credit Card Servicing

Citizens Financial Group, Inc. (NYSE:CFG) has a settlement with the Consumer Financial Protection Bureau resolving a complaint about billing errors and related issues by its unit Citizens Bank.
These billing errors have been slammed as "Unlawful Credit Card Servicing" activities by the Consumer Financial Protection Bureau.
As a civil penalty, the company has been slapped with a fine of $9 million to resolve the mismanagement and disputes.
The regulatory watchdog criticized Citizens Bank as the company failed to properly manage and respond to customers' credit card disputes and fraud claims.
The company said that the issue impacted "a very small subset" of Citizens' credit card customers nearly eight years ago.
In 2015, about 25,000 customers were affected by billing errors.
The CFPB originally sued Citizens Bank in January 2020.
Citizens Bank said it contacted the CFPB to report the issues while voluntarily beginning remediation efforts.
"While Citizens continues to disagree with the CFPB's stance with respect to these long-resolved issues, which were self-identified and voluntarily addressed years ago, we are pleased to put this matter behind us," said Polly Klane, General Counsel of Citizens Bank.
Price Action: CFG shares are trading higher by 2.94% to $27.99 on the last check Tuesday.