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Friday, October 10, 2014

CFPB: Bank Found Deceptively Advertising Free Checking

By ABIA Outside Counsel, Chrys D. Lemon, McIntyre & Lemon, PLLC

The CFPB took action against a bank headquartered in NY for deceptively advertising free checking accounts.

“The CFPB found that [the bank] lured in consumers with promises of ‘no strings attached’ free checking, without disclosing key eligibility requirements. When consumers failed to meet the requirements, [the bank] automatically switched them to checking accounts with fees. [The bank] will provide $2.9 million in refunds to the approximately 59,000 consumers deceived into paying fees and it will pay a $200,000 penalty for the violations.”

Read full article.

CFPB Press Release

CFPB Consent Order