TAB Bank pays $315K penalty for UDAP violations

The FDIC issued a consent order to Transportation Alliance Bank, Inc. (DBA TAB Bank) to pay a civil money penalty of $315,000 after determining that the bank had engaged in "violations of Section 5 of the Federal Trade Commission Act ('Section 5'), 15 U.S.C. § 45(a)(1) by engaging in deceptive practices related to charging consumers who paid the full loan balance in the first 90 days of the loan a rebate processing fee up to $40 calculated as a function of accrued interest, even though the Bank’s marketing promoted “no interest” and a “full interest rebate” if they repaid the loan in full during this 90-day promotional period."