Links in “Fines, Penalties, Suits, and Settlements”
- House Bill Provides TILA/RESPA âGood Faithâ Relief
A House bill would allow relief from threats of enforcement or lawsuits for financial institutions that demonstrate âgood faith effortsâ to comply with the new TILA/RESPA combined disclosures that go into effect on August 1, 2015. The proposed relief period would extend through the end of 2015. [5/4/15]
- Two Employees Caught in Fraud Slapped with Ban
After pleading guilty to six-figure fraud schemes, the two former credit union employees were banned from federally-insured financial institutions by the CNUA. The two were also ordered to pay six-figure restitution fees. [5/1/15]
- No Ruling by Court Could Affect CU Target Settlement
The judge overseeing the Target breach case did not rule on Monday on a motion by FIs to block the recent $19 million settlement offer between Target and Mastercard. This settlement could jeopardize the ability of credit unions involved in the class action suit to move forward. [4/29/15]
- Why $50 Million in Illegal Overdraft Fees = Only a $7.5 Million Fine
$119-billion Regions Bank in Alabama charged nearly $50 million in illegal overdraft fees, but was hit with only a $7.5 million fine after it discovered the error, reported it to the CFPB and began refunding the fees. [4/29/15]
- 20 Calls a Day? CFPB, FTC Levy Huge Fine on Mortgage Servicer
The CFPB and the FTC have announced that they have levied a $15 million civil money penalty and ordered restitution to consumers in the amount of $48 million to be paid by Green Tree Servicing, LLC. The agencies found that the servicer had illegally failed to honor loan modifications for loans from other servicers, demanded payment before offering loss mitigation options, delayed decisions on short sales, and harassed and threatened borrowersâin some cases calling borrowers as many as 20 times per day. [4/22/15]
- Geographic Targeting Order Makes Waves
About seven hundred businesses in Miami have been targeted by the Financial Crimes Enforcement Network (FinCEN) due to a possible trade-based money laundering scheme with ties to drug trafficking. This bust was due to the issuance of a geographic targeting order. [4/22/15]
- Green Tree Servicing Agrees to Pay $48 Million in Borrower Restitution
The Consumer Financial Protection Bureau (CFPB) and Federal Trade Commission (FTC) took action against Green Tree over mistreatment of borrowers. [4/22/15]
- Harassing Borrowers, Not Honoring Loan Mods = $63 Million Hit for Green Tree
Green Tree Servicing failures included harassing borrowers with up to 20 calls per day, delaying decisions on short sales, deceptive tactics to charge convenience fees, and failure to honor prior loss-mitigation agreements. The company will be $63 million in restitution and civil money penalties. [4/22/15]
- FHA Mortgage Lender Files Lawsuit Against Federal Agencies
The federal government must switch to the defensive as a lawsuit has been filed against two of it's agencies; the suit is against the U.S Department of Justice and the Department of Housing and Urban Development. The suit has been brought by Quicken Loans who claims that the agencies have "been trying to bully the company into making blatantly false statments and demanding the company pay an inexplicable penalty or face legal action." [4/21/15]
- CFPB Shines Light on Hidden Fees
Fort Knox National Company and Military Assistance Company will be charged $3.1 million for failing to disclose various fees and not notifying service members when fees were charged. [4/21/15]
