Fifth Third Bank, operating across multiple states including Michigan, faced allegations from the Consumer Financial Protection Bureau (CFPB) for improper practices leading to around 1,000 wrongful auto repossessions.

The bank reportedly charged customers for insurance coverage that duplicated existing policies, resulting in financial harm to 35,000 customers.

The CFPB also accused Fifth Third of opening unauthorized accounts and linked these actions to a sales incentive program, the Detroit Free Press has reported.

In response, Fifth Third Bank has agreed to pay fines totaling $20 million, $15 million for sales practices and $5 million for issues related to auto finance servicing.

The bank stated it has settled these matters with the CFPB and will collaborate on remediation efforts for affected customers.

Written by B.C. Begley