FNB of Omaha hit with $7.5 CMPs and $27.75 M restitution
The OCC and CFPB have issued coordinated orders against First National Bank of Omaha ("Bank") for unfair or deceptive acts or practice under the Federal Trade Commission Act (OCC order) and unfair, deceptive or abusive acts or practices under the Consumer Protection Act (Bureau) in the marketing and sale of debt-cancellation add-on products and the billing of consumers for credit monitoring services they did not receive. The orders cover the bank's praictices from 1997 to 2012, and deceptive enrollment practices from 2010 to 2012, when the practices stopped after a supervisor examination.
The Bureau ordered the payment of a $4.5 million penalty to its Civil Penalty Fund; the OCC ordered the payment of a $3 million civil money penalty to the U.S. Treasury. The Bureau and the OCC ordered restitution to an estimated 257,000 affected consumers, in the estimated amount of $27.75 million. The Bank had approximately $18.4 billion in total assets as of March 31, 2016.
This is the eighth action the Bureau has taken in coordination with another regulator to address illegal practices with respect to credit card add-on products and the 12th action the Bureau has taken in total to address such practices.