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 CFPB.
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 compliance plan.