Links in “Fines, Penalties, Suits, and Settlements”

Two pharmaceutical companies (Concordia and Par) have settled charges from the FTC for entering an illegal non-compete agreement. The agreement would reduce competition in the market for a generic ADHD drug, which in turn would increase profits for the companies at the expense of higher prices for consumers. Under the FTC settlement, the two companies are prohibited from entering further agreements to keep prices artificially high. [8/19/15]

Northern Piedmont FCU ($18.3 million in assets) in Warrenton, VA will be the first to receive restitution payments from the Lynrocten FCU fraud case. The judge ruled that Northern Piedmont should receive all of the recovered funds to date instead of distributing the recovered funds on a pro rata basis as advocated by NCUA. [8/19/15]

BVS Performance Solutions is suing the Credit Union Executive Society (CUES) for breach of contract claiming that CUES didn’t perform certain marketing activities called for under a 2011 agreement. BVS Performance Solutions provides staff training and member education services. [8/18/15]

Opinion piece in Esquire uses Citizens Bank "shoddy" deposit-processing practice as an example of why calls to abolish the CFPB are a mistake. [8/14/15]

It’s hard to believe, but for years Citizen’s Bank had a policy that it would keep any discrepancies between the amount noted on the customer’s deposit ticket and the actual amount of the deposit based on the total of the cash and checks for small transactions. Over the years those small discrepancies amounted to about $11 million dollars in additional revenue to the bank. Now the CFPB says, “Give it back!” [8/13/15]

The "unfair and deceptive" practice of sometimes pocketing the difference when there was a discrepancy between the size of the deposit and the number written on the deposit slips will cost Citizens Bank $14 million in restitution and $20.5 million in federal penalties. "This is sloppy banking," said CFPB Director Richard Cordray. [8/13/15]

Two Florida companies have been charged by the FTC for illegally selling the data of consumers completing their online payday loan applications to companies who subsequently raided the applicants' bank accounts for at least $7.1 million. [8/13/15]

In a unprecedented move, a three-judge panel from the D.C. Circuit Court ruled unanimously that a small community Texas bank had the standing to challenge the constitutionality of the CFPB. The bank filed the suit after they were unable to continue issuing mortgage loans to lenders and complete wire transfers due to CFPB rules. [8/3/15]

In 2012, an Alabama-based bank voluntarily reimbursed nearly $35 million in wrongful overdraft fees to some 200,000 customers. So what did they do that cost them a $7.5 million fine in 2015, and what can your institution do to avoid the same mistakes? [7/31/15]

Nearly $2 million was stolen by a former CU manager over a 13 year period. Kathryn Sue Simmerman would swipe money from the Shoreline Federal Credit Union  vault and hide it in her purse. Simmerman agreed to plead guilty to embezzlement and structuring transactions to evade reporting requirements. [7/31/15]