First National Bank of Omaha to Pay $35 Million for Deceptive Credit Card Practices
The Consumer Financial Protection Bureau (CFPB) and the Office of the Comptroller of Currency (OCC) ordered the First National Bank of Omaha to pay $35.25 million in fines and reimbursements for deceptive credit card practices. The organizations determined the bank charged consumers for products they were not receiving, and signed up customers for products under false pretenses.
First National Bank of Omaha will have to pay $27.75 million to approximately 257,000 customers who were affected by the deceptive practices between 1997 and 2012. They will also pay a $4.5 million civil penalty to the CFPB, and a $3 million penalty to the OCC.
The orders primarily correspond to debt cancellation and credit monitoring products that the bank was promoting. These products were run by third-party companies, many of which are no longer on the market (Privacy Guard and Identity Secure, for example).
The CFPB determined that First National Bank of Omaha sold these products to consumers by distracting them or misleading them on the phone. The bureau alleges the bank did not tell consumers if they were ineligible for certain product benefits, or the bank billed customers for credit monitoring services they were not receiving.