Citizens Bank, National Association

The OCC has issued a Consent Order to Cease and Desist and to pay a $2 million civil money penalty to Citizens Bank, National Association, Providence, Rhode Island, for deficiencies in the bank's practices that resulted in violations of Section 5 of the Federal Trade Commission Act and 12 CFR Part 37, related to billing and marketing practices for identity protection and debt cancellation products. The Comptroller's findings:

• Since at least January 2008, the Bank and/or its vendors marketed and sold identity protection products (“Identity Protection Products”), which included credit monitoring and credit report retrieval services, to Bank customers.
• Bank customers who enrolled in the Identity Protection Products were required to provide sufficient personal verification information or authorization before their credit bureau reports could be accessed. Until the information or authorization was submitted, the customers could not receive the full credit monitoring and/or credit report retrieval services of the Identity Protection Product in which they were enrolled.
• From at least January 2008 to September 2014, the Bank and/or its vendors, billed customers of Identity Protection Products who were not receiving credit monitoring and/or credit report retrieval services for the full fee of the product, even though those customers were not receiving all of the benefits of the product.
• From at least January 2008 to September 2014, the Bank retained a portion of the fees paid by the Identity Protection Products customers, including fees paid by the customers who were not receiving the credit monitoring and credit report retrieval services.
• By reason of the foregoing billing practices for its Identity Protection Products as described in Paragraphs (1) to (4) of this Article, the Bank engaged in unfair practices in violation of Section 5 of the FTC Act, 15 U.S.C. § 45(a)(1).
• The Bank’s violations of Section 5 of the FTC Act caused substantial consumer injury.
• Since 2005, the Bank has marketed and sold a debt cancellation product to Bank customers. The debt cancellation product included cancellation of some or all of a customer’s credit card balance upon the occurrence of certain qualifying events. The Bank contracted with a debt cancellation product vendor in connection with this product.
• From at least 2005 through 2013, some Bank customers experienced an event covered by the debt cancellation agreement, but the Bank and/or the debt cancellation product vendor may have denied the claim or miscalculated the amount of the benefit.
• By reason of the foregoing practices for the debt cancellation product as described in Paragraphs (7) and (8) of this Article, the Bank engaged in an unfair practice in violation of Section 5 of the FTC Act, 15 U.S.C. § 45(a)(1).
• The Bank’s violation of Section 5 of the FTC Act caused substantial consumer injury.
• Since 2005, the Bank has offered its debt cancellation product with a thirty (30) day review period during which the Bank would credit any product fees imposed on an account if the customer decided to cancel his or her enrollment in the product during the first thirty (30) days. This thirty (30) day review period was set forth in the Bank’s written agreement with the customer.
• From 2005 through 2012, a small number of customers were not credited for debt cancellation product fees imposed upon their accounts despite cancelling their
  enrollments within the 30-day review period, which was contrary to the terms of the Bank’s written agreement with the customers.
• By reason of the foregoing practice for its debt cancellation product as described in Paragraphs (11) and (12) of this Article, the Bank engaged in a deceptive practice in violation of Section 5 of the FTC Act, 15 U.S.C. § 45(a)(1).
• Since approximately 2005, the Bank did not provide sufficient disclosures to customers in connection with its debt cancellation product, specifically regarding the customers’ cancellation and refund rights given in oral short form disclosure. This information was included in the long-form disclosure mailed to the customer after he or she signed up for the product.
• By reason of the foregoing practice for its debt cancellation product as described in paragraph (14) of this Article, the Bank violated 12 C.F.R. Part 37.
• The Bank’s violations of Section 5 of the FTC Act and 12 C.F.R. Part 37 discussed in Paragraphs (1) through (15) of this Article are part of a pattern of misconduct that resulted in financial gain to the Bank.

In addition the CMP, Citizens was ordered to make full reimbursement to all eligible customers.