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

Score one for the financial institutions in their ongoing battle against retail giant Target over its massive data breach in 2013.  A district court judge has certified five financial institutions as a class, which paves the way for their lawsuit to move forward.  The judge further characterized as absurd Target’s argument that since financial institutions are not required by law to reissue cards they therefore did not have to incur reissue expenses. [9/16/15]

$67 million later, World Law Group has assuaged the CFPB for its illegal debt collection practices. Specifically, charging illegal upfront fees and making false promises. [9/16/15]

The FDIC hit Comenity Bank and Comenity Capital Bank $64 million in CMPs and restitution requirements for UDAAP related violations associated with deceptive practices in the Bank's marketing and servicing of credit card "add-on products." Comenity promotes co-branded credit cards through various retailers nationwide and cross promotes payment protection/debt cancellation add-on products to these cards. Key violations included practices on fees related to add-ons, material misrepresentations and omissions on product cancellations and gift cards. [9/11/15]

The CFPB alleges the nation's two largest debt buyers attempted to collect debt that was unsubstantiated or inaccurate, as well as filing lawsuits against consumers without having the documentation to prove their allegations. [9/10/15]

The U.S. District Court District of Minnesota will consider granting class-action status to financial institution plaintiffs with lawsuits against Target's massive data breach from winter 2013. If the class is certified, financial institutions would be allowed to join their claims against Target and seek damages as a class of plaintiffs, rather than as individuals. [9/9/15]

The former CEO and her husband, a Baltimore County police sergeant, are now facing theft charges for allegedly embezzling more than $100,000 from the HealthCare United Federal Credit Union. Between the two there are multiple charges of theft and conspiracy to commit theft. [9/9/15]

Mid-Atlantic lender M&T Bank settles with the Fair Housing Justice Center over allegations that it would "steer" borrowers to particular neighborhoods or loans based on their race or national origin. [9/2/15]

A financial fraud case on the FBI's site targeted young women in shopping malls, recruiting them to participate in an upcoming hair show, offering to pay them for their services, but requiring their debit card numbers to access their accounts. Checks would be deposited, then cash immediately withdrawn before the bank realized the fraud. If the women became skeptical, the scammers had a Plan B that was even worse. [9/1/15]

The NCUA has issued two prohibition orders for the month of August, one to a Texas credit union employee for undisclosed reasons and another to an Ohio credit union employee for theft. [9/1/15]

After more than a year of controversy and accusations between the credit union management and regulators, the Alabama Credit Union Administration has placed Alabama One CU into conservatorship. The regulator said the officers and employees of the $598 million credit union had exhibited persistent patterns and practices of allowing insiders to have loans at preferential rates and terms, falsified information for insider loans, and accepted things of value in exchange for making loans. The regulator further stated that the credit union had lost $11 million in the past 18 months due to poor underwriting practices. [8/28/15]