Bank returning $10.1M in credit card settlement

AP News
Posted: Mar 08, 2011 4:35 PM
Bank returning $10.1M in credit card settlement

A Nebraska bank is returning more than $10 million to customers and paying a $250,000 fine after federal regulator said it employed deceptive practices that resulted in excessive fees.

The Federal Deposit Insurance Corp. announced Tuesday that World's Foremost Bank, which holds about $2.9 billion in assets, agreed to the settlement, which included an order to halt several practices.

Among them: charging a penalty interest rate on balances that existed before a customer went over their credit limit or missed a payment; charging late fees when payment due dates fell on a Sunday or holiday; charging over-the-limit fees, even after the bank lowered the borrowers' credit limit.

The bank agreed to make changes to tighten oversight of its credit card business. It neither admitted nor denied wrongdoing.