Fifth Third Bancorp (FITB)

[jgrabar]

Grabar Law Office is investigating allegations that Fifth Third Bancorp (Nasdaq: $FITB ) has, for years, and continuing through at least 2016, used a “cross-sell” strategy to increase the total number of products and services it provided to existing customers.

As alleged by the Bureau of Consumer Financial Protection (Bureau) in a complaint filed in March, to further this cross-sell strategy, and to increase the number of
products and services it provided to existing customers, Fifth Third conditioned
employee-performance ratings and, in some instances, continued employment on whether managers and their subordinate employees met ambitious sales goals. Fifth Third also used an incentive-compensation program that rewarded managers and their subordinate employees for selling new products and services to existing customers.

"Despite knowing since at least 2008 that employees were opening unauthorized consumer-financial products and services, Fifth Third took insufficient steps to properly implement and monitor its program, detect and stop misconduct, and identify and remediate harmed consumers. Predictably, Fifth Third’s employees, without consumers’ knowledge or consent, opened deposit accounts in consumers’ names; transferred funds from consumers’ existing accounts to new, improperly opened accounts; issued credit cards; enrolled consumers in online-banking services; and opened lines of credit on consumers’ accounts. In short, Fifth Third focused on its own financial interests to the detriment of consumers."
According to the Bureau complaint, Fifth Third’s conduct violated the Consumer Financial Protection Act of 2010 (CFPA), the Truth in Lending Act (TILA), the Truth in Savings Act (TISA), and their implementing regulations.

If you have continuously held FITB since February 2016, you may have rights to demand better corporate governance on behalf of FITB.

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