July 9 (Reuters) - The top U.S. watchdog for consumer

financial protection said Tuesday it would fine Ohio lender

Fifth Third Bank $20 million for allegedly opening fake

customer accounts and forcing auto insurance on consumers who

already had coverage, among other allegations.

The U.S. Consumer Financial Protection Bureau also said it

would order Fifth Third to pay redress to about 35,000 harmed

consumers, including 1,000 who had their cars repossessed, and

ban the bank from using sales practices the agency said act as

an incentive to commit fraud.

A company representative did not immediately respond to a

request for comment.

"The CFPB has caught Fifth Third Bank illegally loading up

auto loan bills with excessive charges, with almost 1,000

families losing their cars to repossession," CFPB Director Rohit

Chopra said in a statement.

According to the CFPB, Fifth Third charged millions in

illegal fees and triggered auto repossessions between 2011 and

2020 after forcing borrowers into unnecessary and duplicative

insurance coverage of no value.

In a second action announced Tuesday, the CFPB said it was

moving to resolve a 2020 lawsuit against Fifth Third alleging

that bank sales strategies resulted in the creation of phony

customer accounts.

Fifth Third must pay a $5 million fine for the alleged auto

insurance-related violations and, pending a judge's order,

another $15 million for opening unauthorized accounts.

Tuesday's announcement follows two CFPB enforcement actions

against Fifth Third in 2015 over allegations of discriminatory

auto loan pricing and illegal credit card practices.