U.S. Bancorp in Minneapolis is the latest bank to face an investigation from the Consumer Financial Protection Bureau tied to its administration of unemployment insurance payments on prepaid debit cards.
The $601 billion-asset company disclosed in a regulatory filing that it is “cooperating fully” with the probe, though it provided no further details.
The CFPB and the Office of the Comptroller of the Currency last summer fined Bank of America $225 million for practices tied to its prepaid card program for disbursing unemployment benefits in California.
Congress approved the program in March 2020. The Labor Department’s inspector general determined as part of a recent audit found a high rate of potential fraud tied to two pandemic-era unemployment programs.