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

Two auto dealers in Las Vegas, TC Dealership and JS Autoworld, have been charged for using deceptive ads which violated the Truth in Lending Act, FTC Act, and Consumer Leasing Act. [6/30/15]

A Las Vegas money services business, Lee's Snack Shop, Inc, has been fined $60,000 for willfully violating the Bank Secrecy Act. Strikes against the MSB included failing to file at least 216 CTRs and attempting to conceal transactions. [6/29/15]

The Attorney General for the State of New York has filed suit and obtained a temporary restraining order against The College Network, a study prep company for nursing students, claiming that the company has cost the students tens of thousands of dollars in generally worthless study materials and made false claims about affiliation with several universities. Southeast Financial Credit Union, a $453 million asset credit union in Tennessee,  is named as a co-defendant in the suit as a result of the credit union’s partnership with The College Network to provide student loans. [6/24/15]

The CFPB announced a relief payment of $5.9 million, including a $500,000 penalty, in an enforcement action against a medical debt collection company for mishandling consumer credit reporting disputes and preventing consumers from exercising important debt collection rights. The announcement includes sound guidance for debt collectors on key practices and unacceptable debt collection actions. [6/19/15]

The CFPB has filed suit against RPM Mortgage, Inc. for violating the Loan Originator Compensation Rule and the Consumer Financial Protection Act.  The suit alleges that the company CEO designed and implemented a scheme that allowed loan originators to receive compensation tied directly to the interest rate of the loan through their individual expense accounts. [6/16/15]

The Bank of Mingo will have to pay a $4.5 million civil money penalty for its “severe and systemic failures in many aspects of its anti-money laundering program.” Ouch. [6/16/15]

Ally Financial and Ally Bank were charged in December 2013 with loan discrimination and ordered to pay $80 million in damages to consumers. Almost two years later, Ally is reaching out to these consumers to rectify the situation and pay up. [6/16/15]

Laws dating back to the 1860s prevent Los Angeles and other cities from suing the bank on behalf of Californians stuck with unwanted accounts and bogus fees, the San Francisco bank argued. Banks like Wells Fargo are only accountable to federal regulators. The bank is seeking to have the lawsuit moved to a federal venue. [6/15/15]

The CFPB hits another company for violations of Reg. Z loan originator compensation violations. The company paid fees to marketing services entities, whose owners included branch managers and loan originators. [6/10/15]

Investigators in New York uncover identity-theft schemes hatched by tellers that cost hundreds of bank customers millions of dollars. [6/9/15]