Societe Generale Faces €4.5 Million Fine Over Deceptive Fees
France's financial fraud watchdog has taken action against banking giant Societe Generale, imposing a €4.5 million fine for engaging in deceptive practices that resulted in customers being unfairly charged fees.
The penalties stem from an extensive investigation conducted by The General Directorate for Competition Policy, Consumer Affairs, and Fraud Control (DGCCRF), France's authority overseeing fraudulent business practices. The investigation spanned from April 2019 to January 2021.
According to the DGCCRF, Societe Generale was involved in "deceptive marketing practices," wherein clients were charged unexplained fees. While the agency deemed the substantial fine "proportional to the seriousness of the acts," specific details about the fees and the number of affected customers were not disclosed.
In response to the penalties, Societe Generale admitted to the fine and attributed the fees to "an IT error." The bank assured that all impacted customers had been fully reimbursed and expressed regret for any confusion caused.
This incident adds to Societe Generale's previous challenges, such as significant losses incurred from unauthorized trading in 2008. Faced with increased scrutiny from financial regulators, the bank, ranking as France's third-largest by assets, now aims to rebuild customer trust and prevent recurrence of similar missteps in the future.