OCC: Union Bank fined $15M for ‘deceptive’ account disclosure practices

The Treasury Department’s Office of the Comptroller of the Currency (OCC) announced Thursday a $15 million civil penalty against MUFG Union Bank for “deceptive practices” caused by alleged weaknesses in execution of internal controls and procedures.

Union Bank, which is now a subsidiary of U.S. Bank, agreed to a May 10 consent order, which acknowledged the bank self-identified the alleged violations, is reimbursing customers, and is undertaking remedial actions. The bank neither admitted nor denied the OCC’s findings.

Between at least 2011 and 2021, the bank deceived customers by stating in account disclosures members of the private bank program would receive fee waivers and discounts, the OCC said in the order. During this period, however, only certain customers of the private bank program received fee waivers and discounts as described.