This class action against US Bank, NA alleges that the bank pressured its employees to make sales of financial products, and that this pressure resulted in employees issuing credit cards to customers who had not requested them. The complaint alleges that these issuances violate the Truth in Lending Act (TILA) and Regulation Z.
The class for this action is all persons in the US who were issued credit cards by US Bank, when they had not applied for the card, and other than a replacement for an existing credit card, between August 19, 2021 and September 8, 2022.
According to the complaint, when US Bank wanted to increase its sales of certain products, it set sales goals for its employees. The sales goals were to be used in evaluating the performance of the employees, the complaint alleges, and provided an incentive to them to make more sales. The sales goals made use of a point-based system, with different products given different point values, based on the money they could be expected to earn for the bank.
The complaint alleges, “In response to sales pressure or to obtain incentive rewards, US Bank employees issued credit cards without the knowledge and consent of the purported customers.”
One such customer was the plaintiff in this case, Bernard M. Kirsner. Kirsner was an attorney who, before his retirement, conducted a law business through his corporation Bernard M. Kirsener, Ltd. The corporation was dissolved after his retirement. Nevertheless, in or around July 2022, the complaint alleges, Kirsner received in the mail a credit card issued by US Bank. The complaint claims the card was issued in his name and in the name of Bernard M. Kirsner, Ltd.
According to the complaint, the card was not a replacement for a card he previously held, nor had Kirsner applied to US Bank for a credit card. The complaint claims that Kirsner “would not have applied for credit in the name of a defunct professional corporation.”
The complaint alleges that sending unrequested credit cards through the mail exposes the cardholder to risks, because unauthorized persons can intercept the card, activate it, and begin using it, while the cardholder has no idea that the card even exists.
The complaint also claims, “On July 28, 2022, the Consumer Financial Protection Bureau entered into a consent order with [US Bank] regarding the issuance of unsolicited credit cards and other accounts.”
The complaint quotes TILA as saying that “no credit card shall be issued except in response to a request or application therefor.” Regulation Z has a similar provision.
Article Type: LawsuitTopic: Loans
Most Recent Case Event
US Bank Credit Cards Issued Without Customer Request Complaint
August 19, 2022
This class action against US Bank, NA alleges that the bank pressured its employees to make sales of financial products, and that this pressure resulted in employees issuing credit cards to customers who had not requested them. The complaint alleges that these issuances violate the Truth in Lending Act (TILA) and Regulation Z.
US Bank Credit Cards Issued Without Customer Request ComplaintCase Event History
US Bank Credit Cards Issued Without Customer Request Complaint
August 19, 2022
This class action against US Bank, NA alleges that the bank pressured its employees to make sales of financial products, and that this pressure resulted in employees issuing credit cards to customers who had not requested them. The complaint alleges that these issuances violate the Truth in Lending Act (TILA) and Regulation Z.
US Bank Credit Cards Issued Without Customer Request Complaint