RBS units to pay $13.9M over U.S. banking violations

THE ROYAL BANK OF SCOTLAND Group Plc will pay $13.9 million in fines and restitution to settle over banking violations in the U.S.
Posted 4/30/13

WASHINGTON - Royal Bank of Scotland Group Plc will pay $10 million in fines and $3.9 million in restitution to settle two banking regulators’ claims that the lenders’ U.S. units deceived retail banking customers.

RBS Citizens NA agreed to pay a $5 million penalty and return $2.5 million to 265,000 customers to resolve the Office of the Comptroller of the Currency claims, and Citizens Bank of Pennsylvania was fined $5 million and will repay $1.4 million to more than 75,000 people in settling with the Federal Deposit Insurance Corp., the agencies said in statements today.

The subsidiaries of Edinburgh-based RBS, Britain’s biggest government-owned lender, were accused of misleading customers of overdraft protection, checking rewards and other programs. The settlement, in which the bank neither admitted nor denied the claims, includes restitution for customers who received inaccurate or misleading disclosures about the programs between 2007 and 2011, the OCC and FDIC said.

“We take the results of these regulatory exams very seriously,” Jim Hughes, a spokesman for RBS Citizens Financial Group, said in an e-mailed statement. “We have changed the practices identified in these exam results and are working with our regulators to address any customer impacts that they have identified.”

The agreement with banking regulators follows a filing yesterday by RBS subsidiary Westminster Bank Plc that the company may face Securities and Exchange Commission civil or administrative action after getting a so-called Wells notice related to a 2007 offering of residential mortgage-backed securities.

PBN Hosted

Join PBN for the best networking event and party of the winter - January 15, 2015 - the Book of Lists Party at the Providence Public Library. Reserve your spot by December 31st and get a holiday gift from PBN!
  • Best Places to Work
    Enrollment is now open for the 7th annual Best Places to Work program. Winners w ...
  • Manufacturing Awards
    Applications are now being accepted for the 2nd Annual Manufacturing Awards. Dea ...
Purchase Data
Book of Lists
Book of Lists cover
PBN's annual Book of Lists has been an essential resource for the local business community for almost 30 years. The Book of Lists features a wealth of company rankings from a variety of fields and industries, including banking, health care, real estate, law, hospitality, education, not-for-profits, technology and many more.
Data icons
Data can be purchased as single lists, in either Excel or PDF format; the entire database of the published book, in Excel format; or a printed copy of the Book of Lists.
  • Purchase an e-File of a single list
  • Purchase an e-File of the entire Book of Lists database
  • Purchase a printed copy of the Book of Lists
    Latest News