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OCC Orders Credit Card Lender to Refund Fees

WASHINGTON - The Office of the Comptroller of the Currency entered into an agreement with First Consumers National Bank of Beaverton, Oregon, to require the bank to refund various credit card fees to customers. Knowing the bank would have to liquidate its credit card portfolio December 28, 2002, First Consumers...

By Staff Writer | Updated on August 12, 2003

WASHINGTON – The Office of the Comptroller of the Currency entered into an agreement with First Consumers National Bank of Beaverton, Oregon, to require the bank to refund various credit card fees to customers. Knowing the bank would have to liquidate its credit card portfolio December 28, 2002, First Consumers did not inform customers when they renewed or initiated their credit cards on or after that date. The credit cards were to be terminated. OCC’s asserted that this was an unfair and deceptive practice and entered into an agreement requiring the bank to refund $1.65 million in annual fees. First Consumers must also refund $255,685 in over the limit fees that resulted from the annual fee charge. Most customers had already been reimbursed as of June 2003. Under the agreement, the bank has to pay the new servicer for reimbursements for those who have not received their refunds. OCC had required First Consumers to sell, merge or liquidate as part of a consent order against the bank in May 2002. Efforts to merge or sell were unsuccessful so liquidation began June 19, 2003.

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