Links in “Fines, Penalties, Suits, and Settlements”

After a fine of $11 million and successful completion of a two-year fix-it window for its anti-money laundering compliance program, Ocean Bank in Florida sees DOJ charges dropped. [8/23]

The Fed announced yesterday that it has filed an appeal that it hopes will bring a conclusion to the case within nine months. In addition, the Fed has requested that the stay of the District Court’s decision that would have resulted in a reduction in the debit interchange fee cap. [8/22]

Last month, Morgan Drexen sued the CFPB, claiming its structure violates the Constitution’s separation of powers. This week, CFPB sued Morgan Drexen alleging the company charged advance fees for debt relief services in violation of the Telemarketing Sales Rule (TSR) and engaged in deceptive acts and practices in violation of the Consumer Financial Protection Act (CFPA). [8/22]

Some states taking new tack by going after banks that allow payday lenders to make withdrawals from borrowers' accounts. [8/21]

Department of Homeland Security seized a $2.9 million account at Veridian Credit Union in Iowa claiming that the Bitcoin and Dwolla client account owner, Mt. Gox, was operating an unlicensed money transmittal business. [8/21]

South Dakota Supreme Court remanded a cased against CUNA Mutual and Black Hills Federal Credit Union to a lower court for class action certification; lower court had originally denied class action certification for the plaintiffs who claim that the CUNA Mutual and the credit union improperly raised the premium payments on their closed-end home equity loans. [8/20]

False statements pertaining to income, employment, and rental history were backed by people paid to answer calls from lenders to affirm the false statements; costs for disability access modifications were also included in the prices, but were rarely done, with children of buyers named as building contractors so money could go to the buyers. [8/19]

Husband of former account clerk of a Conn. CU defaulted on loan on which she co-signed; CU later took a $14K disability check deposited to her account. [8/19]

One of nation's largest consumer reporting agency (CRA) charged with insufficient handling of consumer's right to inaccurate information in consumer credit reports. Key lessons on FCRA dispute notification and handling noted. [8/16]

Side by Side-like test used to establish different treatment. Case is against apartment complex and property manager, but testing principle merits fair lending consideration for financial institutions. [8/15]