A US regulator has announced a $1.5 million settlement with a bank accused of deceiving and overcharging hundreds of veterans.
Deceptive Practices
The Federal Deposit Insurance Corporation (FDIC) claims that Bank of England in Arkansas misled veterans by:
- Falsely promising they could skip loan payments when refinancing VA mortgages
- Misrepresenting the bank’s relationship with the VA
Consumer Harm
According to the FDIC, veterans were “overcharged and did not receive the loan products promised,” resulting in significant financial harm.
Other Violations
In addition to violating the Federal Trade Commission Act, the bank is also accused of breaking laws related to:
- Real estate settlement procedures
- Fair credit reporting
- Home mortgage disclosure
Penalties and Consequences
- Bank of England has agreed to pay a $1.5 million penalty.
- Nine former employees face individual enforcement actions.
- One employee is banned from the banking industry.
Bank’s Financial Situation
As of 2023, Bank of England had assets of $412.8 million but reported net losses in recent years.
