Tuesday, November 21

Hall of Shame: CFPB Orders First National Bank of Omaha to Pay $32.25 Million for Illegal Credit Card Practices

The job of the most honest seller is to sell you, not to give you reasons to buy from a competitor. That over-riding reality drives the free-enterprise system, and places a responsibility on you.

FoolProof's Hall of Shame is here to remind you why a healthy dose of skepticism should rule your decisions before dealing with anyone who wants to touch your money or your general welfare.

August 25, 2016

Credit Cards

Deceptive Marketing and Illegal Billing of Add-On Products Harmed Hundreds of Thousands of Consumers

Source: www.consumerfinance.gov

The Consumer Financial Protection Bureau (CFPB) has ordered First National Bank of Omaha to provide $27.75 million in relief to roughly 257,000 consumers harmed by illegal practices with credit card add-on products. The bank used deceptive marketing to lure consumers into debt cancellation add-on products and it charged consumers for credit monitoring services they did not receive. First National Bank of Omaha will also pay a $4.5 million civil money penalty to the CFPB.

Specifically, the bank:

  • Disguised the fact that it was selling consumers a product
  • Distracted consumers into making a purchase
  • Failed to disclose consumers' ineligibility
  • Hindered consumers from obtaining debt cancellation product benefits
  • Made cancellation of debt cancellation products difficult
  • Billed for credit monitoring services not provided

The CFPB's order requires that First National Bank of Omaha:

  • Repay $27.75 million to affected consumers
  • End unfair billing and other illegal practices
  • Pay a $4.5 million penalty: