FDIC Hits Comenity for UDAAP Violations

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]