The Federal Deposit Insurance Corp. lowered the Community Reinvestment Act (CRA) rating for Transportation Alliance Bank, reflecting an issue with one of the Ogden, Utah, bank’s fintech partners.
The $1.2 billion-asset bank’s rating was lowered from “satisfactory” to “needs to improve.”
The agency did not identify the fintech, which apparently ran afoul of a section in the Federal Trade Commission Act by having an “illegal credit practice” that affected a large number of consumers.
TAB Bank recently settled claims by the Iowa Division of Banking that it charged egregiously high interest rates on roughly 1,600 loans between 2020 and 2022. That state has a 21% interest rate cap.