Links in “Fines, Penalties, Suits, and Settlements”
- PwC Hit for $25 Million for Altering Bank’s Money Laundering Report
New York regulators find that PricewaterhouseCoopers, under pressure from executives of the Bank of Tokyo Mitsubishi, improperly altered a report on bank wire transfers on behalf of countries under U.S. sanctions. The company will pay $25 million and be prohibited from consulting for new bank clients for two years. [8/19/14]
- Business Banking Gone Bad: A Cautionary Tale
Construction company Tennessee Electric (TEC) was furious when its bank, TriSummit Bank, allowed 55 fraudulent transfers from its account for a total of $327,000 to Russian hackers. TEC and the bank had a security agreement in place that required that ACH transfers had to have a verbal confirmation before being processed. TEC is suing to recover its losses, plus $2 million in punitive damages and experts believe it has a strong case. [8/18/14]
- Bait-and-Switch? That Will Be $19.3M, Please
The example of Amerisave can serve as a warning to all lending institutions, including credit unions. CFPB's Richard Cordray summarizes: "Amerisave lured consumers in with deceptive advertising, trapped them with costly upfront fees, and then illegally overcharged them for services from an undisclosed affiliate. By the time consumers could have discovered the advertised low rates were too good to be true, they had already committed to pay hundreds of dollars to Amerisave." [8/13/14]
- Booming Subprime Auto Lending Industry = Booming DOJ Attention
Santander Consumer joins General Motors as recipients of Department of Justice subpoenas related to their subprime auto loans, a booming market segment fueled in part by an influx of money from private-equity firms. [8/11/14]
- Asking Applicants about Disabilities Costs Fifth Third $1.5 Million
Justice Department settles with Fifth Third Mortgage Co. to resolve allegations that it asked loan applicants to provide a letter from their doctor to document the income they received from Social Security Disability Insurance. [8/8/14]
- Add Another $16 Billion (or So) to BoA’s Tab?
Reports of a $16-$17 billion Bank of America's settlement would be the largest DoJ settlement arising from economic meltdown. [8/7/14]
- 62 Credit Unions Agree to Pay Late Filing Fees
NCUA announced yesterday that all 62 credit unions subject to fees for late filings of their first quarter 5300 Call Reports have agreed to pay the fines. Originally, NCUA had identified 104 credit unions as late filers, but 42 of those credit unions were able to demonstrate mitigating factors that affected the timing of their filings and NCUA agreed to eliminate the late fees. Individual fees ranged from $150 to $20,000. [8/6/14]
- DOJ Targets Subprime Auto Lending
In collaboration with the CFPB, the Department of Justice is going after abuses in the subprime auto lending market. The DOJ has subpoenaed records dating from 2007 from General Motors concerning the securitization of its subprime auto loans. This follows on the heels of an $80 million settlement of a discrimination claim against Ally Bank in its subprime auto lending program. [8/6/14]
- NCUA Slaps the Wrist of Late Filers
62 of the 104 credit unions that filed their first-quarter 2014 Call Report data after the deadline were penalized by the NCUA, with the penalties ranging from $150 to $20,000. [8/6/14]
- How the CFPB Spends (or Doesn’t) Your Civil Money Penalties
Where do the civil money penalties imposed by the CFPB go? The Government Accountability Office reviewed the bureau's handling of the penalty fund and found that of $139 million in civil penalties collect, $31 million went to compensate victims, $13.4 million for consumer education, $1.5 million for administrative expenses, leaving $93 million in unallocated funds. [8/1/14]
