The Federal Deposit Insurance Corp. said Friday a South Dakota bank will pay more than $10 million to credit card holders who federal regulators said were unfairly charged fees, reports Dow Jones.
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The agency said 1st Financial Bank USA has agreed to pay $10 million in restitution to certain cardholders, as well as a $140,000 civil penalty. The bank did not admit or deny any liability as part of the agreement.
The settlement stems from a billing practice in which 1st Financial customers who had been assessed an over-limit fee in one billing cycle were not given time or notice to bring their account under the limit before they were assessed another fee.
