FARGO, N.D. (Legal Newsline) — The Consumer Financial
Protection Bureau (CFPB) has announced Intercept Corporation and company
executives Bryan Smith and Craig Dresser have been charged with allegedly
enabling unauthorized withdrawals from consumer accounts.
Intercept Corporation is a third party payment processor in Fargo. According to the CFPB, Intercept did not do enough to
stop clients who were stealing from consumers through unauthorized
withdrawals, insufficient funds or invalid or closed accounts.
"Intercept and its executives Bryan Smith and Craig
Dresser ignored clear signs of brazen fraud, including illegal withdrawals from
consumer accounts, and need to clean up their act,” said CFPB Director Richard
Cordray. “Companies cannot turn a blind eye to wrongdoing when they
process payments from consumer banking accounts on behalf of clients who are
breaking the law."
The CFPB alleges Intercept, Smith and Dresser violated
the Dodd-Frank Wall Street Reform and Consumer Protection Act by ignoring blatant
warning signs of potential fraud and ignoring complaints from banks and
The CFPB seeks to obtain a court judgment that would put an
end to the alleged unlawful practices, obtain relief for consumers and impose
penalties on the defendants.