Enforcement

The Consumer Financial Protection Bureau has filed a lawsuit in federal court against a web of payday lending companies, alleging that they collected money that consumers did not owe and falsely threatened consumers with lawsuits and imprisonment.

Four Oaks Bank & Trust in Four Oaks, N.C., said its May 2011 enforcement action has been replaced with a more lenient agreement that requires it to address governance issues and other matters.

The past two weeks have dashed hopes by bankers that the New York Department of Financial Services might take a different approach after the departure of Benjamin Lawsky as its superintendent. In taking actions against Promontory Financial Group and launching a probe into a bank-run instant messaging service, the agency appears poised to carry on Lawsky's legacy.

Promontory Financial vowed to take the New York Department of Financial Services to court after it effectively banned the consulting firm from working on regulatory issues for banks the department supervises.

The Special Inspector General for the Troubled Asset Relief Program is renewing calls for further investigation of servicers it claims may be denying too many Home Affordable Modification Program applications.

The Consumer Financial Protection Bureau is charging two companies affiliated with Western Union and Fidelity National Financial more than $38 million in total charges for allegedly steering consumers into a mortgage payment program that cost them millions of dollars in fees.

A Senate committee approved legislation Thursday that would offer some protection from federal authorities to banks and credit unions doing business with state-authorized marijuana merchants.

WASHINGTON — Student Financial Aid Services is facing more than $5.2 million in charges after the Consumer Financial Protection Bureau alleged the company illegally signed up consumers for student financial assistance and proceeded to automatically bill them annually.

TrustCo Bank Corp NY in Glenville, N.Y., has agreed to improve corporate governance, capital planning, internal auditing and other areas after federal regulators found the issues during an examination.

WASHINGTON — The Federal Deposit Insurance Corp. issued a $140 million enforcement action against Banamex USA, a Citigroup subsidiary, on Wednesday for having Bank Secrecy Act and anti-money laundering deficiencies.

Discover Financial Services will refund $16 million to consumers and pay a $2.5 million penalty to resolve U.S. Consumer Financial Protection Bureau claims that the bank engaged in illegal student loan servicing practices.

Identity theft protection company LifeLock is coming under fire from the Federal Trade Commission for failing to adequately protect customers' credit card and bank account data, Social Security numbers and other sensitive personal information, among other allegations.

Citibank has joined a growing list of banks and vendors that have paid a stiff penalty for allegedly using deceptive marketing and billing tactics in selling credit card add-on products. It agreed to pay $770 million in fines and restitution charges, falling just short of a record fine issued last year.

Citigroup is facing $770 million in charges after two federal regulators said the megabank engaged in deceptive marketing and unfair billing practices related to its credit card add-on products.

The Consumer Financial Protection Bureau's massive collection of consumer data continued to raise concerns with lawmakers on Wednesday despite assurances from the agency's director that the data is anonymized. Lawmakers also voiced worries that the agency is inappropriately targeting auto dealers.

The Department of Justice's Office of Professional Responsibility said it found no support for allegations that federal lawyers wrongly pursued legal online payday lenders and forced banks to cut ties with legitimate businesses.

Lenders and real estate agents may have to extend the usual 30-day timelines for rate locks and sales contracts while they get acclimated to the new Consumer Financial Protection Bureau mortgage disclosures that take effect in October.

A bipartisan group of lawmakers has introduced the first Senate bill protecting banks involved with legal marijuana businesses.

Federal prosecutors are cracking down on violations of the Bank Secrecy Act — often without first clarifying to virtual currency firms and other industries the sort of behavior will get them in trouble.

Federal and state regulators said the $216 million settlement against JPMorgan Chase is a warning that they are not finished targeting firms that mishandle collections or improperly resell bad debts.