WASHINGTON (Legal Newsline) — First National Bank of Omaha
must pay $27.75 million in relief to approximately 257,000 consumers allegedly harmed by illegal credit card practices, the Consumer Financial Protection Bureau
(CFPB) has announced. The bank must also pay $4.5 million in penalties to the
The bank purportedly used deceptive marketing to dupe
consumers into purchasing debt cancellation add-on products. It also charged
consumers for credit monitoring services it never provided, the CFPB claimed.
Specific allegations against the bank include disguising the
fact that it was selling a product, distracting consumers into making
purchases, hindering consumers from obtaining the benefits of the debt
cancellation products purchased, and billing for services not provided.
“First National Bank of Omaha violated the trust of its
customers by illegally signing them up for credit card add-on products,” CFPB
Director Richard Cordray said. "The CFPB's track record, and this result
today, shows strong and consistent action against credit card companies that
dupe consumers into buying a product they do not want."
In addition to the monetary fines, the company must end the
alleged unfair billing practices. It is prohibited from marketing any debt
cancellation of credit monitoring add-on products until it gives the CFPB a