The US Office of the Comptroller of the Currency (OCC) fined $5m to RBS Citizens, a subsidiary of Royal Bank of Scotland Group, and ordered it to pay $2.5m as compensation to 265,000 affected customers.
Meanwhile, CBPA entered into a settlement with the US Federal Deposit Insurance Corp (FDIC) for violating the Federal Trade Commission Act and has agreed to reimburse additional $5m penalty and $1.4m in restitution to 75,000 affected customers.
Citizens said in an email, "We take the results of these regulatory exams very seriously."
"We have changed the practices identified in these exam results and are working with our regulators to address any customer impacts that they have identified," the bank added.
Without admitting or denying the charges, both banks and its affiliate have agreed to pay the fine.
Further, CBPA has agreed to keep the system and procedures in place to correct the violations of law, ensure future compliance, and prepare and implement a comprehensive restitution plan for all consumers adversely affected by the violations.
According to the market regulators, the banks violated the rule between 2007 and 2011.
