MUFG Union Bank to pay $15M penalty over fee waiver-related violations

The Office of the Comptroller of the Currency ordered San Francisco-based MUFG Union Bank NA to pay a civil money penalty of $15 million for allegedly engaging in deceptive practices in violation of Section 5 of the Federal Trade Commission Act, according to a May 10 consent order.

Between at least 2011 and 2021, MUFG Union Bank stated in account disclosures that all customers of its private bank program would receive certain fee waivers and discounts, but it only applied the fee waivers and discounts to certain customers of the program, according to the Office of the Comptroller of the Currency's (OCC's) findings.

Also, between at least 2005 and 2020, the bank stated in account disclosures that it would waive or discount the fee for safe deposit box rentals for certain customers but did not apply such waivers and discounts as described, according to the regulator.

Between at least 2013 and 2021, MUFG Union Bank stated in account disclosures that it would waive monthly service charge fees for deposit accounts under certain conditions, including if the customer had a mortgage with the bank or if the customer maintained minimum deposit balances across multiple linked accounts. However, the bank did not apply the fee waivers as described, the OCC found.

The incidents resulted from one or more weaknesses in the design or execution of procedures and internal controls within MUFG Union Bank, according to the consent order.

The bank neither admitted nor denied the OCC's findings. It self-identified its violations of laws, is reimbursing customers affected by the violations and is taking appropriate remedial actions to correct the violations, per the consent order.

U.S. Bancorp acquired MUFG Union Bank on Dec. 1, 2022.