When opening a checking account, a bank will review a customer’s past banking history supplied from their previous financial institution. JPMorgan Chase allegedly failed to ensure this information was accurate and often left customers in the dark about why their applications were denied or who to contact to dispute these findings. For this, the company will pay a $4.6 million fine. [More]
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Former MoneyGram Executive To Pay Record Personal Fine To Settle Money Laundering Accusations
The former compliance officer for money transfer company MoneyGram must pay $250,000 — the largest such fine imposed — to settle allegations that he personally failed to stop consumers from becoming victims of fraud. [More]
Bed Bath & Beyond, JCPenney, Others To Pay $1.3M For Trying To Pass Off Rayon As “Bamboo”
Four national retailers will be paying a hefty tab at the register after federal regulators say they continued to deceptively mislabel rayon products as “bamboo,” despite being warned five years ago that this practice violated the law. [More]
Nation’s Biggest Employment Background Screeners Must Pay $13M Over Inaccurate Reports
Before offering a prospective employee a job, many companies will first perform a background check. As with credit reports, any inaccuracies in these transcripts can affect an applicant’s eligibility for employment. To that end, federal regulators have ordered two of the country’s largest employment background screening report providers to pay $13 million in penalties and refunds for providing inaccurate information. [More]
Sprint To Pay $2.95M Over Claims It Violated The Fair Credit Reporting Act
Under the Federal Trade Commission’s Fair Credit Reporting Act, companies are required to inform consumers when they are offered services with less favorable terms than those offered to consumers with better credit standing. That apparently wasn’t the case for Sprint. [More]
CFPB: Michigan Bank Must Pay $37.5M For Failure To Provide Consumers With Relief From Foreclosure
Consumers facing the prospect of losing their homes have few avenues of recourse and when even one of those options is taken away, the results can be devastating. That’s just one reason why the Consumer Financial Protection Bureau announced action – to the tune of a $37.5 million – against a Michigan bank for its illegal conduct in blocking borrowers’ attempts to save their homes. [More]
Over Your Credit Limit? Get Ready For Higher Interest Rates!
Next time you brush past your credit limit you may get hit with more than a hefty over-the-limit fee. The Red Tape Chronicles reports that credit card companies are starting to slap exuberant spenders with penalty interest rates. Compounding the danger to consumers, creditors are simultaneously rushing to slash credit limits.