BANCORP BANK PENALIZED FOR OVERCHARGES ON PREPAID CARDS

On March 7, 2018 the FDIC ordered the Bancorp Bank to pay a penalty and to reimburse consumers for overcharges on prepaid cards. The Order requires Bancorp Bank to pay a $2 million civil money penalty and to make approximately $1.3 million in restitution payments to about 243,000 consumers harmed by unfair and deceptive acts and practices involving the assessing of transaction fees greater than those disclosed by the bank. The FDIC also found that the bank violated the Electronic Funds Transfer Act, the Truth in Savings Act, and the Electronic Signatures in Global and National Commerce Act.

A copy of the Order For Restitution and Order to Pay Civil Monetary Penalty is available at https://www.fdic.gov/news/news/press/2018/pr18019a.pdf.

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