NEW YORK (TheStreet) -- Shares of U.S. Bancorp (USB) were down 1.34% to $42 in afternoon trading Thursday after U.S. regulators said U.S. Bank, a division of U.S. Bancorp, would pay $57 million tied to allegations the financial services company charged customers for services they never received.
The U.S. Office of the Comptroller of the Currency and the Consumer Financial Protection Bureau said U.S. Bank would pay $9 million in fines and $48 million in restitution to affected borrowers.
The bank offered identity theft protection and credit monitoring services as add-on features to mortgages and checking accounts, but regulators said some borrowers were billed for them even though they never activated the services. Some even paid for the services for years and never received any benefits.
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Separately, TheStreet Ratings team rates U S BANCORP as a "buy" with a ratings score of A-. TheStreet Ratings Team has this to say about their recommendation:
"We rate U S BANCORP (USB) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, expanding profit margins, increase in stock price during the past year, increase in net income and growth in earnings per share. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."