Links in “Fines, Penalties, Suits, and Settlements”
- Here Comes the Boom: Flagstar Hit for $37.5 Million Over New Mortgage Servicing Violations
Flagstar Bank in Michigan has been ordered to pay $37.5 million over violations of the new servicing rules that took effect earlier this year. [9/30/14]
- Another Credit Card Add-on Settlement
This time it is Merrick Bank in Utah that is hit for unfair and deceptive practices over its "PAYS Plan," a payment protection plan that the FDIC found full of misrepresentations and disclosure failures to the tune of $1.1 million in civil penalties and $15 million in restitution. [9/30/14]
- Three Monkeys Approach to ATA Ill-Advised
A circuit court decision suggests that playing blind, deaf and dumb is not a viable business strategy when it comes to the Anti-Terrorism Act. Violations go beyond just knowing that an account is supporting terrorist activities to include knowledge or deliberate indifference that it is supporting a terrorist organization. [9/29/14]
- Unheeded Warnings Cause Unneeded Fines
After charging consumers for add-on features that were never provided, U.S. Bank is required to pay $48 million in relief to customers, $4 million to the OCC, and $5 million to the CFPB. Richard Cordray, CFPB Director, was absolutely unapologetic, saying "we have consistently warned companies about [these] practices..." [9/26/14]
- Credit Card Add-On Products Land U.S. Bank in Hot Water
U.S. Bank will pay $48 million in relief to customers and $9 million in penalties to the CFPB and OCC for issues related to the practices of its third-party vendor, Affinion, in handling credit card add-on services. [9/26/14]
- Anti-Terrorism: What You Need to Know about the Recent ATA Rulings
Earlier this week, there were two court decisions made against financial institutions for violating the Anti-Terrorism Act (ATA). Find out what they did and how you can avoid it. Hint: Record Retention and a robust AML compliance program are important. [9/25/14]
- Two Credit Unions File Suit Against Home Depot
Southern Chautauqua FCU in Lakewood, NY ($61 million in assets) and First Choice FCU in New Castle, PA ($39 million in assets) filed suit last week against Home Depot for damages they incurred as a result of the massive data breach. In the suit, the credit unions assert that Home Depot knew about the breach before they made the situation known to the public. [9/25/14]
- Does Recent Court Decision Suggest Banks Will Need to Maintain Private Terrorist Lists?
New York jury finds Jordan's Arab Bank liable for Hamas terrorist violence, even though the problematic customers were not on official terrorist blacklists. Plaintiffs' attorneys argued that, even so, the links to terrorist organizations were obvious. [9/25/14]
- FTC Collects from Abusive Debt Collectors
Pinnacle Payment Services, LLC, has been banned from debt collection activities and is subject to a settlement fee of over $9 million after engaging in abusive debt collection practices. This is one of many recent cases involving the FTC halting illegal and abusive practices related to debt collection. [9/24/14]
- Itâs Always the Ones You Least Suspect
A former senior loan officer at Middle Tennessee FCU, who was working on degrees in accounting and law, has pled guilty to embezzling more than $370,000 from the credit union. Latisha Cochran admitted to creating fictitious membership accounts, loans, and credit card accounts from 2006 to 2013. Interestingly, Ms. Cochran hosted a blog that emphasized the benefits of credit union membership and described herself as a âhighly creative, recognized as a results-oriented and solution focused individual.â [9/23/14]
