The Consumer Financial Protection Bureau recently ordered U.S. Bancorp and its partner Dealers' Financial Services (DFS) to return $6.5 million to military service members. The CFPB uncovered unfair marketing practices and fees designed and implemented by DFS.
For U.S. Bancorp, a fine of this magnitude is nothing more than a slap on the wrist. However, it is a harbinger for change in how regulators view third-party relationships. Banks will now have to think long and hard about outsourcing, even to reputable companies like Jack Henry and Associates and Fiserv .
In the video below, Motley Fool contributor Jay Jenkins discusses the signficance of this fine and what it may mean for banks and the third-party companies who provide outsourced services.
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The article U.S. Bank's $6.5 Million Is Just the Tip of the Iceberg originally appeared on Fool.com.
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