FDIC

FDIC Enters Into $20 Million Consent Order With Debt Settlement Entities

On March 28, 2018, the Federal Deposit Insurance Corporation (“FDIC”) annou​nced settlements with a bank and an affiliated lender (“Defendants”) relating to allegations of deceptive lending practices.  According to the FDIC, the Defendants provided, as “debt-settlement products,” loans to borrowers who were heavily indebted, which loans had settlement fees of up…

Read More

FDIC Reaches $2 Million Settlement with Bank for Charging Allegedly Excessive, Undisclosed Fees

​On March 7, the Federal Deposit Insurance Corporation (FDIC) announced that it reached a settlement with a Delaware bank, resolving allegations that the bank engaged in unfair and deceptive practices in violation of Section 5 of the Federal Trade Commission Act ​(the “FTC Act”) and violated the Electronic Funds Transfer Act,…

Read More

Federal Banking Regulators Assess $65 Million Penalty Against Default Management Company

On January 24, the Federal Deposit Insurance Corporation, the Board of Governors of the Federal Reserve, and the Office of the Comptroller of the Currency announced a $65 million fine assessed against a default management services company. The company’s predecessor had consented to a cease and desist order in 2011, stemming from allegations that it…

Read More

FDIC and Federal Reserve Settle Claims Against Bank and Financial Aid Refund Distributor

On December 23, the FDIC and Federal Reserve each announced settlements in closely related enforcement actions against a bank and a company that distributed financial aid refunds.  The FDIC settled its claims for deceptive practices in violation of Section 5 of the Federal Trade Commission (FTC) Act with each defendant.  The Federal Reserve brought its Section 5…

Read More