Links in “Fines, Penalties, Suits, and Settlements”
- Trades Lash Out at NCUA Over Late Filing Fees
The credit union trade associations are lashing out at NCUA over its plan to assess significant penalties on credit unions that do not file their 5300 Call Reports within the required time frames. Calling the up-to-$1-million-dollars-per-day fees extreme and unnecessary , the trades say that credit unions just need more awareness of the need for timely filings. [1/17]
- CFPB Takes on Kickbacks by Fidelity Mortgage Corp.
CFPB orders Fidelity Mortgage Corp. and former owner to pay $81K for funneling illegal kickbacks to a bank in exchange for real estate referrals in contravention of RESPA. [1/17]
- Telecheck Called on for $3.5 Million Fine for FCRA Violations
Fine matches Certegy fine last year and alleges that TeleCheck failed to follow proper dispute procedures including failure to assure the maximum possible accuracy of provided and furnished information and to promptly correct errors on consumersâ reports. [1/17]
- The Plot Thickens as Six Are Charged in Fraud Ring in Connection with Taupa Lithuanian CU Liquidation
Prosecutors have now charged five individuals, in addition to the former manager, in the fraud that resulted in the liquidation of the $15 million Taupa Lithuanian Credit Union. Former manager Spirikaitis is reported to have embezzled $4.2 million that he used to buy a lavish home, a luxury suite at the Cleveland Browns stadium, nine vehicles, and an arsenal of semi-automatic weapons and ammunition. [1/16]
- NCUA to Fine Late Call Report Filers
In a worst case scenario, a credit union that does not file its 5300 Call Report in a timely manner could face a fine of $1 million dollars per day until the report is filed. The deadline to avoid a civil money penalty will be the 4th Friday of the month following the end of a quarter, beginning with April 25th of this year. [1/16]
- FTC Expands Attack on Phony Mortgage Relief Companies
South Florida-based company faces expanded efforts and permanent ban for alleged mortgage relief scam resulting in largest FTC judgment to date against a purported mortgage assistance relief provider. [1/15]
- Morgan Drexen’s Claim Against Constitutionality of CFPB Rejected
California federal district court dismisses challenge that the CFPB was unconstitutional because it violates separation of powers, specifically only giving the President authority to remove the CFPB director for cause and the vesting of the CFPB's leadership in a single director. [1/15]
- NCUAâs OIG Points Finger at Board and Supervisory Committee for Embezzlement and Fraud at G.I.C. FCU
In a report issued by NCUAâs Office of Inspector General, the Board of Directors and supervisory committee members, along with NCUA examiners, have been taken to task for the failure to supervise, exercise responsibilities, and complete audits for three consecutive years. These factors led to a charge of embezzlement for $2 million against the former assistant manager and an estimated $7 million loss to the NCUSIF as a result of the failure of the $15 million G.I.C. FCU in Cleveland. [1/10]
- $1.2 Million Fine Later: Bank Ignores Red Flags, Including Consumer Complaints About Unauthorized Withdrawals
A North Carolina bank ignores customer complaints about unauthorized withdrawals, a warning from an attorney general, and other red flags. The result? A $1.2 million settlement for allowing a third-party processor direct access to the Federal Reserve Bank to process debits against consumer accounts on behalf of fraudulent payday lenders, internet gambling organizations and an alleged Ponzi scheme. [1/10]
- Judge Rejects JPM’s Attempt to Dismiss Debt Collection Case
Judge will not dismiss California's case that JPMorgan Chase illegally tried to collect debt from 100,000 credit card customers. [1/9]
