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, the Truth in Savings Act, and the Electronic Signatures in Global and National Commerce Act. Specifically, according to the consent order, the FDIC alleged that the bank engaged in unfair and deceptive practices by assessing transaction fees on point-of-sale signature-based transactions that were greater than the fees the bank disclosed to consumers. The bank agreed to create a restitution plan for affected consumers. The FDIC estimates that the bank will pay restitution of collectively $1.3 million to approximately 243,000 harmed consumers. The bank also agreed to pay a civil money penalty of $2 million.
Blog Enforcement Watch March 12, 2018