U.S. Bancorp Settles Privacy Suit

Share this content:
U.S. Bancorp, Minneapolis, said yesterday that it agreed to pay $3 million to settle a privacy-related lawsuit and to reimburse customers who were not satisfied with products or services purchased via telemarketing conducted on behalf of the bank. In addition, the bank holding company, which is parent of U.S. Bank, agreed to inform customers of their right to "opt out" of having their names used for marketing purposes and to inform them of its privacy policy.

U.S. Bancorp did not admit any wrongdoing in the case, in which Minnesota Attorney General Mike Hatch had accused the company of providing confidential information about its customers to MemberWorks, a Stamford, CT, affinity marketer that uses telemarketing and other means to offer products and services to customers of banks and other organizations.

"Given U.S. Bancorp's early industry-leading decision to stop disclosing customer information to third parties for purposes of marketing non-financial products, we felt in was in the public interest to resolve the lawsuit," Hatch said in a prepared statement.

The bank agreed to pay an amount equal to the revenues it received from cooperative marketing programs. The payments include $1.5 million to chapters of Habitat for Humanity in Minnesota, $500,000 to the state of Minnesota and just over $1 million to charities or other public bodies in other states in which the bank does business.

Sign up to our newsletters

Company of the Week

Since 1985, Melissa has helped thousands of companies clean, correct and complete contact data to better target and communicate with their customers. We offer a full spectrum of data quality solutions, including global address, phone, email, and name validation, identify verification - available for batch or real-time processes, in the Cloud or on-premise. Our service bureau provides dedupe, email/phone append and geographic/demographic append services for better targeting and insight. For direct mailers, Melissa offers easy-to-use address management/postal software, list hygiene services and 100s of specialty mailing lists - all with competitive pricing and excellent customer service.

Find out more here »

Career Center

Check out hundreds of exciting professional opportunities available on DMN's Career Center.  
Explore careers in digital marketing, sales, eCommerce, marketing communications, IT, data strategies, and much more. And don't forget to update your resume so employers can contact you privately about job opportunities.

>>Click Here

Relive the 2017 Marketing Hall of Femme

Click the image above