Links in “Fines, Penalties, Suits, and Settlements”
- JPMorgan Chase and the Terrible, Horrible, No Good, Very Bad Day
The CFPB and the Attorneys General from 47 states and D.C. are going after JPMorgan Chase for selling "zombie" credit card debt and illegally robo-signing court documents. Chase was ordered to stop collecting, enforcing in court, or selling more than 528,000 consumersâ accounts. In addition to the $30 million civil penalty to the OCC, Chase will pay at least $50 million in consumer refunds and$136 million in penalties and payments to the CFPB and states. Yeah... not a good day. [7/9/15]
- Home Depot Moves to Dismiss Data Breach Suit
Attorneys for Home Depot claim that âNoticeably absent is any plausible allegation of concrete injury traceable to Home Depot U.S.A., Inc. or The Home Depot, Inc.â and have submitted a motion to dismiss the data breach suit filed by over 100 plaintiffs, including financial institutions in over 44 states. Attorneys for the claimants blasted the move and plaintiffs attorneysâ claim that the expenses incurred by the plaintiffs were voluntary in order to protect themselves against future harm. [7/9/15]
- OCC Slams JP Morgan With $30 Million Civil Money Penalty
The OCC found deficiencies in the preparation and notarization of affidavits and other sworn documents used in the bankâs debt collection litigation as well as its Servicemembers Civil Relief Act compliance program. [7/9/15]
- Deceptive Debt Sales and Collections Cost JPM $166 Million
The CFPB hits JPMorgan Chase for $136 million to settle claims that it used abusive tactics to collect debts. "This is another failure by Chase to comply with the law." [7/9/15]
- Debt Relief or Debt Grief?
A nationwide debt relief telemarketing was halted today under the allegations of scamming millions of dollars from consumers, further indebting those who were already in debt. [7/8/15]
- Payday Lenders Pay Up
Two payday lenders who were charged by the FTC last year have decided to settle and will be banned from consumer lending and charged with a total fee of $55 million. [7/8/15]
- The Sticky Fingers of a Credit Union Board Chair
More than $17 million was stolen from 400 investors in a wire fraud case concerning a Swedish-based credit union and a board member from Florida. The 65-year-old board member pled guilty and is scheduled to be sentenced in September. [7/7/15]
- CFPB on the Offense Against Companies for Unfair Billing of Credit Card Add-On Products and Services
The CFPB took action against two credit card add-on product vendors: Affinion Group Holdings, Inc., and Intersections Inc. The credit card companies offered "add-on" services such as "credit monitoring" or "identity theft protection" for a monthly or annual membership fee. The credit card companies in question had partnered with banks to provide these products, but the CFPB's investigations revealed that Affinion  and Intersections engaged in unfair practices related to the billing or administration of the products in violation of the Dodd-Frank Wall Street Reform and Consumer Protection Act. [7/2/15]
- NCUA Issues Prohibition Orders
The NCUA issues four prohibition orders for the month of June. One former employee was ordered to pay restitution of over $11 million. [7/1/15]
- A Tangled Web Just Became More Snarled
The saga of $602 million Alabama One Credit Union has just become more complex. Following a threat by the Alabama Credit Union Administration to place the credit union into conservatorship, Alabama One has filed suit against a U.S. Senator, the legal advisor to the Governor, and several local attorneys for conspiracy and abuse of power. The credit union claims that the defendants attempted to coerce tens of millions of dollars in legal settlements from the credit union despite the fact that the it had been found to be operating in a safe and sound manner by both state and federal regulators. [6/30/15]
