First Electronic Bank pays FDIC $250K in CMPs

The FDIC has issued Consent Orders to First Electronic Bank, Sandy, Utah ("Bank") for Restitution and to pay a Civil Money Penalty of $250,000, having determined that the Bank has engaged in:

• unsafe or unsound banking practices;
• deceptive and unfair acts and practices in or affecting commerce, in violation of section 5 of the Federal Trade Commission Act (“Section 5”), 15 U.S.C. § 45(a)(1), by failing to adequately inform consumers of promotion plan requirements concerning deferred interest charges assessed on open-end credit accounts; and
• other violations of law, including the Equal Credit Opportunity Act (“ECOA”), 15 U.S.C. §§ 1691 et seq., and its implementing Regulation B, 12 C.F.R. § 1002, and Section 207(b)(2) of the Servicemembers Civil Relief Act, 50 U.S.C. App. 501 et seq.

Restitution of at least $56,000 to affected consumers was also ordered.

• Consent Order, Order for Restitution, Civil Money Penalty