Privacy Suit Settled

U.S. Bancorp has settled two complaints involving violations of consumers' privacy. One suit was a consolidated class action suit, and the other was brought by a multi-state task force of attorneys general. According to Cardtrak, the suit was filed in June 1999 "for allegedly releasing consumers' private banking information to a telemarketing company in exchange for a fee of $4 million plus a 22% commission on each sale." The bank provided such information as social security numbers, "account balances, transaction history, credit limits, year to date finance charges . . . behavior score, bankruptcy score and other personal data." The bank has agreed to establish a $3 million settlement fund to pay consumers' claims ranging from $25 to $400, but averaging about $50. Any unused portion of the settlement fund will go to the law school of the University of Minnesota. In addition, U.S. Bancorp will pay the first $500,000 of plaintiffs attorney fees approved by the court. U.S. Bank voluntarily settled with the attorneys general by contributing $4 million to charities in Minnesota and other states.