OCC hits Chicago bank with consent order tied to alleged deceptive ads
Federal Savings Bank in Chicago is dealing with a consent order from the Office of the Comptroller of the Currency tied to alleged deceptive advertising to veterans.
The OCC alleged that the $1.1 billion-asset bank instructed millions of consumers to contact the bank because they had “available funds.” The ad turned out to be a solicitation for a Department of Veterans Affairs cash-out refinance loan that required consumers to access the funds by applying for a new loan.
“The Bank’s deceptive statements induced consumers to obtain VA cash-out refinance loans, which resulted in certain consumers paying significant origination fees and receiving refinanced mortgage loans with significantly increased interest rates and monthly payments,” the consent order said.
The bank neither admitted nor denied the findings when it consented to the order.