Links in “Fines, Penalties, Suits, and Settlements”
- Washington Examiner Sues CFPB for Headquarters Renovation Documents
CFPB declines to provide 335 of the 350 documents it located in response to a Freedom of Information Act request by the company that publishes the Washington Examiner seeking information related to the escalating costs of the renovation of the agency's headquarters. The publishing company has now filed a lawsuit. [3/24]
- Big Win in Interchange Fee Battle
U.S. Court of Appeals for the D.C. Circuit released its opinion in the debit interchange case that largely overturned a lower court's ruling last year that had favored the merchants.
See also this article. [3/24]
- Credit Suisse’s Turn: Settlement with FHFA Comes in at $885 Million
The deal settles lawsuits by the Federal Housing Finance Agency over loans sold to Fannie Mae and Freddie Mac. The Swiss lender was among 18 lenders sued by the FHFA to recoup losses on $200 billion in mortgage backed securities. [3/24]
- Judge Rules FTC Has Authority to Regulate Tribes in Payday Lending Case
When it comes to unfair or deceptive acts, payday lenders that claim ties to Native American tribes are not beyond the reach of the Federal Trade Commission, a U.S. District Court judge rules. [3/20]
- Feds Target CEO and 3 Other Employees in Investigation of $1.275 Million Loss at Alabama CU
Numerous credit union members have filed civil suits against Alabama One CU alleging they were encouraged to take out personal loans and then lend the proceeds to businessman Danny Ray Butler in order to help him pay off his $20 million dollar loan to the credit union. Butler, who was indicted last year for bank fraud, has signed a plea agreement with federal prosecutors to provide information about others who knew about his crimes. [3/17]
- California Minority Groups Sue Governor Over Diversion of Mortgage Settlement Funds
Groups say California, which was facing a state budget shortfall at the time, diverted most of the $369 million mortgage settlement to plug the gap rather than use the funds for mortgage counseling and other housing-related purposes. [3/17]
- CEO Commits Suicide During FBI Investigation
Jim Payne, CEO of Wilkes-Barre City Employees FCU committed suicide Monday evening after speaking earlier in the day with the credit unionâs attorney. The FBI has confirmed that the credit union is part of an ongoing investigation, but would not confirm whether Payne was a target. [3/13]
- Two More Big Banks Settle Force-Placed Insurance Lawsuits
HSBC and Wells Fargo join JPMorgan and Citi in settling force-placed insurance lawsuits. Settlements appear to range from $32 million to $300 million. [3/11]
- Hundreds of Credit Unions File Late Call Reports Despite Potential Fines
Although the number of credit unions that filed their 4th quarter 2013 Call Reports late has declined significantly, 561 credit unions still missed the January 24th filing deadline. NCUA stated that these credit unions will receive warning letters, but subsequent late files will face civil money penalties under NCUA's new rule. [3/6]
- Credit Union Commits a Costly Mistake
Ft. Worth City Credit Union thought it had a clear cut case when it discovered $500 missing from a memberâs account. The credit union believed another member, Mike Martinez, a law enforcement officer, had fraudulently withdrawn the funds. Martinez was arrested and fired from his job. Unfortunately, the credit union later discovered the withdrawal was due to a clerical error. Martinez, who has been reinstated, is now suing the credit union and two executives for $1 million. [3/6]
