On October 18, the Federal Deposit Insurance Corporation (FDIC) issued an order requiring a Kentucky bank to pay civil money penalties. The order resolves allegations that the bank violated section 122(a) of the Truth in Lending Act (TILA), 15 U.S.C. § 1632(a), and section 1026.5(a)(1) of Regulation Z, 12 C.F.R. § 1026.5(a)(1) by failing…
On August 10, 2018, the Board of Governors of the Federal Reserve (“Board of Governors”) announced that a national bank had consented to the assessment of a civil money penalty totaling $8.6 million pursuant to the Federal Deposit Insurance Act, as amended, 12 U.S.C. §§ 1818(b)(3) and 1818(i)(2)(B), for engaging in…
On March 28, 2018, the Federal Deposit Insurance Corporation (“FDIC”) announced settlements with a bank and an affiliated lender (“Defendants”) relating to allegations of deceptive lending practices. According to the FDIC, the Defendants provided, as “debt-settlement products,” loans to borrowers who were heavily indebted, which loans had settlement fees of up…
On March 7, the Federal Deposit Insurance Corporation (FDIC) announced that it reached a settlement with a Delaware bank, resolving allegations that the bank engaged in unfair and deceptive practices in violation of Section 5 of the Federal Trade Commission Act (the “FTC Act”) and violated the Electronic Funds Transfer Act,…
On May 11, 2017, the Federal Deposit Insurance Corporation (FDIC) announced a settlement with a Wisconsin bank and two affiliated institutions, resolving allegations that the three lenders violated Section 5 of the Federal Trade Commission (FTC) Act, which prohibits unfair and deceptive practices. The lenders allegedly violated this provision by: (1) charging…
On January 24, the Federal Deposit Insurance Corporation, the Board of Governors of the Federal Reserve, and the Office of the Comptroller of the Currency announced a $65 million fine assessed against a default management services company. The company’s predecessor had consented to a cease and desist order in 2011, stemming from allegations that it…
On November 23, 2016, Advance America, Inc., a payday lender, and Community Financial Services Association of America, Ltd., a trade organization which represents the interests of payday lenders (Plaintiffs), filed a Motion for Preliminary Injunction (Motion) against the Federal Deposit Insurance Corporation, the Office of Comptroller of the Currency, and the…
On March 28, the Federal Deposit Insurance Corporation (FDIC) announced the release of its February 2016 enforcement actions against banks and individuals. The FDIC announced that, after entering into a consent agreement with a Wisconsin bank on January 26, the bank consented to an order to pay civil money penalties…
On March 16, the United States Attorney for the Eastern District of New York, Inspector General for the Department of Housing and Urban Development (“HUD”), and Acting Inspector General for the Federal Deposit Insurance Corporation (“FDIC”) announced that the government settled a False Claims Act lawsuit against a New York-based…
On February 1, 2016, the FDIC announced that it reached a settlement with a Utah State nonmember Bank for $250,000, to resolve allegations of deceptive and unfair acts and practices under section 5 of the Federal Trade Commission Act for “failing to adequately inform consumers of promotion plan requirements concerning…
On December 23, the Federal Deposit Insurance Corporation (FDIC) announced that it settled claims against a Delaware bank alleging unfair, deceptive, unsafe, and unsound acts and practices in violation of the Federal Trade Commission Act (Section 5). According to the FDIC, the bank violated Section 5 by “failing to provide promised protections to…
On December 23, the FDIC and Federal Reserve each announced settlements in closely related enforcement actions against a bank and a company that distributed financial aid refunds. The FDIC settled its claims for deceptive practices in violation of Section 5 of the Federal Trade Commission (FTC) Act with each defendant. The Federal Reserve brought its Section 5…
On September 28, 2015, the acting United States Attorney for the Eastern District of New York announced the filing of a civil suit against several mortgage lenders and a consumer counseling and relief fund. The suit alleges that the lenders conspired with the counseling fund in an effort to hide their high default…
On September 8, the Federal Deposit Insurance Corporation (FDIC) settled with two national banks for alleged violations of Section 5 of the Federal Trade Commission Act. The banks are wholly-owned subsidiaries of the same parent company. The FDIC alleged that the banks engaged in unfair and deceptive practices in connection with…
On August 28, 2015, the Federal Deposit Insurance Corporation (FDIC) announced the release of its July 2015 administrative enforcement actions against banks and individuals. Among these was an Order to Pay Civil Money Penalties assessed against a Louisiana bank for $123,000 for alleged violations of the Flood Disaster Protection Act of 1973 (FDPA), the National Flood Insurance…
On August 28, 2015, the Federal Deposit Insurance Corporation (FDIC) announced the release of its July 2015 administrative enforcement actions against banks and individuals. Among those actions was an Order to Pay assessed against an Ohio bank for $9,600 for alleged violations of the Flood Disaster Protection Act of 1973 (FDPA) and Part 339 of the FDIC Rules and Regulations. Specifically, the FDIC…
On June 1, the Federal Deposit Insurance Corporation (FDIC) entered into a consent order for civil penalties against a local Massachusetts bank concerning alleged violations of the Flood Disaster Protection Act of 1973 and Part 339 of the FDIC Rules and Regulations. The FDIC alleged that the bank made loans secured…
The Consumer Financial Protection Bureau’s recent action against two credit card vendors regarding credit monitoring and identity theft protection services is a reminder of the legal risks associated with certain add-on products. The July 1 settlement, in which the CFPB found that the vendors misled customers about the benefits of…
On May 4, 2015, Comptroller of the Currency Thomas Curry, Federal Reserve Board (FRB) Governor Daniel Tarullo, and Federal Deposit Insurance Corporation (FDIC) Chairman Martin Gruenberg held the third in a series of outreach meetings to discuss with the public their efforts to reduce the regulatory burden on community banks…
On May 12, the Board of Governors of the Federal Reserve System announced the execution of a settlement in an enforcement action against a state member bank concerning alleged violation of Section 102(f) of the National Flood Insurance Act (NFIA). The settlment noted that where a pattern of practice of…