RBS Citizens, affiliate agree to $13.9M settlement
RBS Citizens, Pennsylvania affiliate pay $13.9M to settle US claims of deceiving on overdrafts
WASHINGTON (AP) -- RBS Citizens and its affiliate Citizens Bank of Pennsylvania have agreed to pay a combined $13.9 million to settle U.S. regulators' claims they deceived customers about overdrafts and other services.
Regulators say the banks are paying $10 million in civil fines and $3.9 million in restitution to customers harmed by inaccurate information. The deal was announced Tuesday by the Federal Deposit Insurance Corp. and the Office of the Comptroller of the Currency. The banks neither admitted nor denied wrongdoing.
The agencies said the banks violated federal consumer-protection laws in their overdraft protection and checking rewards programs, and in processing stop payment orders for customers. They said about 340,000 customers were affected from 2007 to 2011.
The banks' parent is Royal Bank of Scotland, which is majority owned by the British government.
