Links in “Fines, Penalties, Suits, and Settlements”
- Case Study: Third-Party Relationship Lands Bank in Hot Water
A look at the third-party relationship between Cole Taylor Bank in the Chicago area and Higher One, which landed the bank in regulatory hot water to the tune of many millions of dollars. [7/17/14]
- Costs of FHA Compliance Has JPM Thinking Twice about Its Participation
JPMorgan's CEO Jamie Dimon says the bank, the nation's second largest mortgage lender, is rethinking its participation in Federal Housing Administration mortgage programs, in light of its recent $614 million settlement. [7/16/14]
- Insufficient Oversight Leads to Another CU Fraud Conviction
Yet another internal fraud case in Illinois has led to the convictions of two former credit union employees (a manager and a teller) at a small Illinois credit union. The two former employees were convicted of embezzling over $320,000 over a multi-year time period. Prosecutors stated that a lack of oversight allowed the employees, which represented two-thirds of the entire staff at the $4.2 million credit union, to engage in the criminal activities. [7/16/14]
- What’s the Worst that Could Happen Without Anti-Money Laundering Systems?
Well, for one thing, it might bring a civil money penalty of $45,000 as money services business Mian knows too well. The institution failed to satisfy crucial BSA/AML reporting requirements such as filing CTRs for all currency transactions exceeding $10,000. [7/16/14]
- How to Protect Your Credit Union Against HR Violations
Employment-related claims and investigations are on the rise, while regulations are becoming increasingly complex. Learn how you can better protect your credit union and how you can ease the regulatory burden. [7/15/14]
- Late Filers Offered Settlement Deal with Consent Form
84 credit unions were late filing their last 5300 Call Report and faced civil money penalties, with the highest individual amount of $106,000. NCUA, however, has offered all 84 credit unions the opportunity to reduce the penalty if they sign a consent form. Those electing not to sign the consent form could still face onerous penalties. [7/15/14]
- FTC Fights Back
Federal Trade Commission settles with a Florida-based payday lender. According to the complaint, the defendant used consumersâ personal financial information it had collected through its websites on the pretense of helping them to get a loan to withdraw $30 from the bank accounts of tens of thousands of consumers, without authorization and without providing anything of value in return. [7/14/14]
- Former CU Manager Pleads Not Guilty to Shell Game
Despite what appears to be considerable evidence to the contrary, Charles Juska, former president of $25 million Tazewell County School Employees CU in Pekin, IL, pleaded not guilty to charges of fraud and forgery. Prosecutors claim that Juska used an elaborate shell game that involved forging membersâ signatures and creating numerous fraudulent loans in order to cover other delinquent loans and to hide delinquencies from his board and loan committee. [7/14/14]
- WF Changing from High-to-Low to Time-Based Transaction Posting
Wells Fargo will no longer order deposited checks in order of highest amount to lowest amount, which often resulted in overdrafts and angered consumer activist groups. Beginning Aug. 11, checks will be posted based on the date and time they're received. The move comes after a federal judge ordered the bank to pay a $203 million fine. [7/14/14]
- Another One Bites the Dust
The Consumer Financial Protection Bureau (CFPB) took enforcement action Thursday against ACE Cash Express, one of the United State's largest payday lenders. ACE Cash Express was charged with pushing payday borrowers into a cycle of debt through illegal debt collection tactics including harassment and false threats of lawsuits or criminal prosecution. ACE will pay $5 million in refunds and another $5 million as penalty for these violations. [7/11/14]
