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

Bank of America's lawyers are seeking to get a verdict that it misrepresented loan quality sold to Fannie Mae and Freddie Mac thrown out on the basis that the loans were well within industry standards and that the GSEs "received exactly what they paid for." [9/23/14]

Santa Ana, California — David Lugo, former IT vice president of SchoolsFirst Federal Credit Union, admits to having embezzled over $2.6 million dollars by ordering unnecessary IT equipment and billing the credit union for it. Will they never learn? [9/19/14]

The FTC is mailing over $1.7 million in refund checks to consumers harmed by AmeriDebt's fraudulent activities. This credit counseling and debt management scam led 60,813 consumers to believe they would be receiving training on how to handle finances and credit, but instead left them out to dry. The refund checks being sent add to the $15 million the FTC has already sent for this scam alone. [9/19/14]

A Missouri-based online payday loan company has received a temporary restraining order from the FTC due to illegal lending practices. In an 11-month period, the company issued $28 million in loans, and collected over $46.5 million. [9/18/14]

The CFPB and FTC have shut down two operations that swindled consumers who were looking for loans online and had money withdrawn from their bank accounts under false pretenses over a period of time. Victims said they couldn't stop the companies from drawing money out of their accounts. [9/18/14]

The CFPB has sued a for-profit chain of colleges, Corinthian Colleges Inc. for predatory student lending and collection schemes. Corinthian is alleged to have lured in students by misrepresenting career services and job prospects, after which the schools utilized illegal practices to collect on the incurred debt. The CFPB has provided a letter specifically to Corinthian students to provide guidance while pursuing the lawsuit. [9/17/14]

The CFPB's "Tell Your Story" program highlights a servicemember who was targeted by a deceptive auto lending program and decided to take a stand. An investigation into the situation resulted in enforcement action against the lender in 2013, and required the lender to refund nearly $6.5 million to over 50,000 servicemembers. [9/17/14]

Federal judge rejects the FDIC's $40 million lawsuit against directors and officers of a North Carolina community bank that went under in 2009. The judge found that they had a rational business purpose and acted in good faith in signing off on a group of loans at the height of the housing boom, thus shielding them from liability. [9/17/14]

Tellers at several banks in New York were part of a ring that stole sensitive customer info to gain access to accounts. They made off with more than $850,000 over the years. Four are under arrest, but one teller is still being sought. [9/17/14]

U.S. Bank agrees to waive couple's $11,500 credit card balance and refinance their home after getting into hot water with the Fair Housing Act by declining to recognize their home as sufficient collateral because it was located on a reservation. [9/17/14]