On December 17, 2024, the Federal Deposit Insurance Corporation (FDIC) entered into a consent agreement with a Utah-based bank, resolving allegations that the Bank engaged in deceptive acts and unfair practices in or affecting commerce, in violation of Section 5 of the Federal Trade Commission Act. Specifically, the FDIC alleged that the bank 1) failed to disclose the personal guarantor liability of corporate representatives applying for commercial credit on behalf of businesses, 2) charged some customers higher late fees, paper delivery fees, and reactivation fees than were disclosed, 3) failed to disclose a returned payment fee to some consumers, and 4) charged duplicate monthly fees to some consumers.
Pursuant to the Order to Pay, the bank agreed to pay a $650,000 civil money penalty.