The Consumer Financial Protection Bureau (CFPB) rampage on credit card “add-on” products continues with Citi being forced to pony up more than $700 million for sins related to credit card add-on products and services.
The U.S. Department of Defense issued a final rule expanding the types of credit products that are covered by the 36% rate cap and other military-specific protections under the Military Lending Act. The Act provides servicemembers and their dependents with specific protections for their “consumer credit” transactions.
Chase Card Services confirmed its has entered into a consent order with the Consumer Financial Protection Bureau and agreements with attorneys general for 47 states and the District of Columbia relating to practices stopped years ago for its sworn document, collections litigation and certain debt sales practices on defaulted credit card debt.
Widely reported Chase has agreed to pony up $125 million regarding collections and sales of consumer credit card debt. An announcement is expected today. The CFPB has been on a rampage regarding credit card “add-on” products.
EverBank Financial Corp announced that EverBank has entered into an amended consent order with the Office of the Comptroller of the Currency and will continue to work toward the completion of all remaining actionable items related to its foreclosure programs identified under an April 2011 consent order with federal regulators.
Pentagon Federal Credit Union (PenFed), the second largest credit union credit card issuer, has named a new executive vice president of business development and government and community affairs.
Heartland Financial USA announced Duane E. White was elected to the company’s Board of Directors. White is a founding director and investor in Minnesota Bank & Trust, a Heartland subsidiary established in 2008 with current assets of $127 million and a partner at Aveus, a management consulting firm. In his role, Mr. White provides executive level consulting to a variety of firms, focusing on improving performance and enhancing shareholder value with a particular focus on the financial services and health care industries. Prior to joining Aveus, he served as Managing Director at Polihua Holdings LLC, a consulting firm working with companies in the financial services and healthcare industries. Through his position with Polihua Holdings, Mr. White served as a consultant to Total System Services, Inc. (“TSYS”), leading TSYS’s healthcare initiatives, eventually joining the company as President of TSYS’s healthcare division.
American Express Company has reached settlements with several regulatory agencies to resolve previously disclosed reviews of certain aspects of the company’s U.S. consumer card practices. Similar settlements were reached with several of the company’s subsidiaries, including American Express Centurion Bank; American Express Bank, FSB; and American Express Travel Related Services Company, Inc. The settlements were…
IronKey’s Trusted Access for Banking secure browsing solution meets the new online banking security guidelines from the Federal Financial Institutions Examination Council (FFIEC), the company announced. The FFIEC member agencies have directed examiners to formally assess financial institutions under the authentication supplement beginning in January 2012. The IronKey Trusted Access for Banking approach delivers the capabilities bank examiners will now look for, requires no changes to bank systems, and stops hackers where they are attacking— at the online banking customer’s PC — even if it is infected with the worst possible crimeware such as ZeuS, SpyEye, Sunspot, and OddJob. IronKey Trusted Access for Banking is an intelligent security software and Internet security service that is also easy to use.
U.S. District Judge Lawrence Piersol denied the government’s motion to dismiss TCF National Bank’s (“TCF”) complaint and took the motion to dismiss the Office of the Comptroller of the Currency (“OCC”) as a proper party defendant under advisement. Conjunctively, the judge denied TCF’s motion for a preliminary injunction, but intends to hold a further hearing immediately following the Federal Reserve Board’s issuance of its final ruling on debit card interchange. Questioning the constitutionality of the Durbin Amendment’s exemption for banks with assets less than $10 billion under the equal protection clause of the U.S. Constitution, Judge Lawrence holds the government’s position that a two-tier pricing system for banks above and below $10 billion in assets will eventually result in a single rate to all banks is speculation on the government’s part.
The new bill “to study the market and appropriate regulatory structure for electronic debit card transactions” and to postpone any regulation by the Federal Reserve Board for at least two years after the passage of the “Debit Interchange Fee Study Act of 2011” is now expected to deprive consumers. Conducted by the Federal Reserve Board,…
Bank of America has amended previously filed call reports for 2009 and 2010 for its FIA Card Services subsidiary thanks to changes to processes covering legal entities implemented in 2010. The amendment covers all eight quarterly periods from 2009 and 2010 and is in call reports filed with the Office of the Comptroller of the Currency and the FDIC, is thanks to a deteriorating credit quality and the adverse impact from The CARD Act on Bank of America’s credit card operations in 2009. It involves a non-cash, non-tax deductible charge related to a $20.3 billion goodwill impairment at FIA, which has now been recorded for that legal entity for the first half of 2009. Included in the amended call reports was the reversal of a $10.4 billion writedown of goodwill taken at FIA during 2010. Bank of America recorded a $10.4 billion impairment in the carrying value of the goodwill of Global Card Services in the third quarter of 2010 as previously reported.