WASHINGTON — A community bank in Northern California settled with the Federal Deposit Insurance Corp. over allegations that certain credit and debit practices were "deceptive," the agency said Tuesday.
The $292 million-asset Monterey County Bank in Monterey, Calif., agreed to a consent order and will pay more than $2 million in restitution to credit and debit card customers, settling claims it failed to properly disclose fees and other information.
The FDIC targeted the bank’s Balance Transfer Card, which, the agency said, promised to help consumers with spotty credit histories to pay down debt and obtain credit cards, as well as a debit card program marketed by a third party.
"The FDIC determined that the solicitations did not disclose information necessary for consumers to make an informed decision," the agency said.
In addition to the restitution, the bank also agreed to pay a civil money penalty of $500,000, and donate $300,000 toward financial education.
