First National Bank of Omaha to Pay $35 Million for Deceptive Credit Card Practices

First National Bank of Omaha to Pay $35 Million for Deceptive Credit Card Practices

August 29, 2016         Written By Natalie Rutledge

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.



The information contained within this article was accurate as of August 29, 2016. For up-to-date information on any of the terms, cards or offers mentioned above, visit the issuer's website. Many of the offers on this article are from our affiliate partners, and LowCards.com may be compensated if you take action with any of our affiliate partners.


natalierutledge

About Natalie Rutledge

Natalie Rutledge majored in Communications at Mississippi State University. She was in sales for a number of businesses and spent nine years working as a communications advisor to various entities. Natalie can be contacted directly at natalie@lowcards.com
View all posts by Natalie Rutledge
Featured No Annual Fee Card
Top Features : Earn cash back twice. 1% when you buy plus 1% as you pay; 0% APR for 18 months on balance transfers
Featured Low Interest Card
Top Features : No annual fee; $150 statement credit after spending $1,200 in first 90 days; 0% on Purchases for 12 months and Balance Transfers for 18 months
Featured Balance Transfer Card
Top Features : 0% APR for 21 months on Balance Transfers and 12 months on Purchases; no annual fee, late fee or penalty rate
Featured Bad Credit Card
Top Features : Reports to all three credit bureaus, perfect credit not required for approval
Featured Fair Credit Card
Top Features : All credit types welcome to apply!