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

The Department of Justice announced two more resolutions under the Swiss Bank Program that gives Swiss Banks the ability to avoid criminal prosecution through cooperative resolution and payment of penalties. In this round, Banque Internationale à Luxembourg (Suisse) SA and Zuger Kantonalbank agreed to the $13 million penalty and agreement to continue cooperative efforts. [11/13/15]

Remember that breach of more than 83 million customers of JPMorgan Chase & Co. in 2014? The U.S. has charged three men with the crime. One of their schemes: They bought penny stocks, then used the stolen data to email likely buyers to persuade them to purchase the stocks, thereby driving up the price. Then the trio would cash out, leaving investors with significant losses. Was it difficult? "It's like drinking freaking vodka in Russia," one of them bragged. [11/11/15]

The CFPB hits PHH Corp. for $109 million for its RESPA violations. An administrative law judge took that number down to $6.4 million this summer. The CFPB isn't giving up so easily and is overruling the recommendation. The case is controversial because it calls into question the legality of market services agreements. [11/10/15]

Chris Johnson, former President/CEO of the Idaho League, has sued the league, its board members, and the directors of another cooperative for $2.4 million claiming he was defamed when allegations arose that he was biased against non-Mormans and Democrats.  Johnson alleges that the events that led to his termination two years ago have caused him “sever, adverse, physiological, and physical harm.” [11/6/15]

The DOJ has proposed an $81.6 million settlement agreement with Wells Fargo Bank for WF's repeated failure to provide over 100,000 homeowners with legally required notices under Bankruptcy Laws. The settlement notes that WF's failure denied homeowners the opportunity to challenge the accuracy of mortgage payment increases. [11/6/15]

Quite a few eyebrows were raised at the announcement of Regions $7.5 million fine, but it’s important to note that there was no new interpretation of law here on the part of the CFPB—just a misinterpretation on the part of the bank. Regions Bank sets an example that all financial institutions can and should learn from. A closer look shows just how easy it is to get off track. [11/3/15]

Calling arbitration clauses "a way to circumvent the courts," the New York Times ignores the data that show consumer arbitration is faster, less expensive, and far more beneficial than class action litigation. [11/3/15]

An internet payday lender in Delaware thought it could avoid the application of borrower's home state law. The Minnesota Supreme Court, however, disagreed. [11/2/15]

Continuing its crackdown on entities it believes are ripping off students and their families, the CFPB is taking action to halt Student Financial Resource Center and College Financial Advisory, which it says "illegally charged millions of dollars for sham financial services." [10/30/15]

The CFPB won a $530 million judgment against Corinthian Colleges, which filed for bankruptcy and was liquidated earlier this year, making it unlikely the judgement will ever be paid. [10/29/15]