Links in “Fines, Penalties, Suits, and Settlements”
- Employee Lawsuits for Violations of FLSA Hit Record High
With an increase of over 237% in the past 10 years, employee lawsuits for violations of the Fair Labor Standards Act continue to rise and pose an increasing risk to employers. Two reasons are cited for the increase: the tightening of the federal standards for class certifications has resulted in more individual and multi-plaintiff lawsuits, and an increased focus on wage and hours laws and the availability of overtime pay. [6/2]
- Rhode Island City Accuses Bank of Redlining
Providence, R.I., accuses Santander Bank of deliberatly cutting back on lending to qualified homebuyers in minority neighborhoods while increasing mortgage lending to predominantly white areas. Also see Bank Lawyer's take here. [6/2]
- LA v. JPM
Los Angeles goes after JPMorgan for allegedly targeting minority borrowers with predatory loans, the latest in a string of cases where municipalities go after lenders. [6/2]
- Once Again, Proof That Crime Really Doesnât Pay!
Former assistant manager and Treasurer, William Memmer, of the failed $15.5 million G.I.C. FCU was sentenced to seven years in prison and ordered to pay $7 million in restitution for embezzlement and fraud. Over a course of years, Memmer used blank credit union checks to pay off over $2 million in personal credit card debt he accumulated on 15 different credit card accounts. [5/30]
- Robbed from the Poor, Answer to Rich
Consumer Portfolio Services, Inc. agreed to pay over $5.5 million to settle charges from the FTC involving violations of the Fair Debt Collection Practices Act and the Fair Credit Reporting Act. Director of the FTC, Jessica Rich, was unapologetic in underscoring the clarity of the law and the blatant abuse from CPS. In addition to charges for misleading, over-charging, and harassing consumers, CPS is also charged for not establishing reasonable written procedures and for failing to properly and promptly respond to consumer disputes. [5/30]
- RealtySouth: Formula for a Big RESPA Violation
Here's what RealtySouth did that landed them a $500K penalty for RESPA violations. [5/30]
- Three on Late Filing List Say Call Reports Submitted to NCUA on Time
Three of the credit unions whose names appeared on the NCUA late filer list say that they submitted their Call Reports on time. It appears that transmission issues may have caused the upload process to not be successful. NCUA has stated that late filers that do not have a legitimate reason for the delay will receive a letter that details the penalty they will be assessed. [5/29]
- Alabama Firm Pays the Price of Non-Disclosure
The Consumer Financial Protection Bureau (CFPB) ordered RealtySouth, the largest real estate firm in Alabama, to pay $500,000 for inadequate disclosures that could leave consumers unaware of their rights to choose service providers during the home-buying process. Â [5/29]
- Late? You Could be Fine(d)
The National Credit Union Administration started assessing civil money penalties for the late filing of 2014 first-quarter Call Reports. After investigating any mitigating factors, the NCUA will send letters to late filers describing the penalties to be assessed. This will be the first time civil money penalties will be charged for late filing of Call Reports. [5/23]
- Spate of Lawsuits Claim Financial Institutions are Helping Payday Lenders to Break the Law
A series of lawsuits against ten banks and one credit union claim that the financial institutions should have known that their online payday lending accountholders were breaking the law. Specifically, the suits filed in federal courts claim that by processing transactions for these companies the financial institutions helping them to exceed usury ceilings and break other laws. [5/22]
