8-KRegulation FDOther EventsExhibits & Filings

FIFTH THIRD BANCORP 8-K Report, Regulation FD Disclosure (Jul 9, 2024)

Filed July 9, 2024For Securities:FITBFITBOFITBPFITB-PIFITB-PMFITB-PAFITBIFITB-PK

Summary

Fifth Third Bancorp (FITB) has announced the resolution of two significant regulatory matters through separate agreements filed on July 9, 2024. The company has entered into a Stipulated Final Judgment and Order with the Consumer Financial Protection Bureau (CFPB) to settle a lawsuit initiated in March 2020 concerning alleged violations of consumer protection laws related to account opening practices. This resolution involves a $15 million civil monetary penalty, commitments to maintain existing policies, and the implementation of a compliance plan and a customer redress program for certain checking, savings, and credit card accounts. Additionally, Fifth Third has agreed to a Consent Order with the CFPB to resolve issues stemming from a discontinued auto lending program involving collateral protection insurance (CPI). This agreement includes a $5 million civil monetary penalty, commitments to maintain policy changes in auto servicing, and the establishment of a compliance plan and a customer redress program for affected auto loan customers. While the company neither admits nor denies the allegations except as specified in the orders, these resolutions aim to conclude these long-standing regulatory proceedings.

Key Highlights

  • 1Fifth Third Bancorp resolves CFPB lawsuit regarding account opening practices with a $15 million penalty.
  • 2Company agrees to a separate $5 million penalty to resolve issues related to a discontinued auto lending program involving collateral protection insurance (CPI).
  • 3Both resolutions involve commitments to maintain existing policies and implement new compliance plans.
  • 4Customer redress plans will be provided in both cases to remediate affected account holders and auto loan customers.
  • 5The matters are settled through a Stipulated Final Judgment and Order and a Consent Order, respectively.
  • 6The company did not admit or deny allegations, except as specified in the orders.

Frequently Asked Questions

The total financial impact from these two resolutions is $20 million in civil monetary penalties ($15 million for account opening practices and $5 million for auto lending issues). Additionally, the company will incur costs related to customer redress programs and ongoing compliance efforts.

For the account opening practices settlement, customer redress will cover checking, savings, or credit card accounts opened between January 1, 2010, and December 31, 2016. For the auto lending issues, customer remediation will cover customers within a redress period beginning July 21, 2011, and ending December 31, 2020.

No, Fifth Third Bancorp has stated that it is neither admitting nor denying the allegations in the lawsuits, except as specified in the Stipulated Final Judgment and Order and the Consent Order to establish jurisdiction and agree to the terms.

While the penalties are significant, the resolutions provide clarity and closure on these long-standing regulatory matters. The company's commitment to maintaining policies and implementing compliance plans suggests an ongoing focus on operational improvements. Investors will likely monitor the costs associated with redress and compliance, as well as any potential impact on customer relationships and future regulatory scrutiny.