recovers $5.4M from BCT fraud prosecution
received a restitution of almost $5.4 million resulting from a fraud
prosecution by the U.S. Attorney’s office of the Northern District of New York. The prosecution followed the 2011 liquidation
of BCT Federal Credit Union of
Binghamton, New York. Visions Federal Credit Union of Endicott, New York,
purchased and assumed BCT’s assets, liabilities and member shares. Laura Conarton and her son, Scott
Lonzinski, both of Susquehanna County, Pennsylvania, pleaded guilty in U.S.
District Court to bank/financial institution fraud by providing false documents
to the credit union in order to obtain approximately $14 million in loans. The
$5,391,641 recovery followed the seizure of bank accounts and property and will
be returned to the Share Insurance Fund.
CFPB stops SCRA fee scam
news release from the CFPB has announced the end to a service member fee
scam run by USA Discounters, Ltd., a company that operates a chain of retail
stores near military bases and offers financing for purchases. USA Discounters
tricked thousands of service members into paying fees for legal protections
service members already had and for certain services that the company failed to
provide. The CFPB has obtained more than $350,000 in refunds for service members
harmed by this scam, and USA Discounters will pay an additional $50,000 civil
Annual Reg Z threshold adjustments published
The CFPB has published in today's Federal
Register a final rule reviewing and adjusting certain dollar
amounts for provisions of Regulation Z under the Credit Card Accountability
Responsibility and Disclosure Act of 2009 Act (CARD Act), the Home Ownership
and Equity Protection Act of 1994 (HOEPA), and the Dodd-Frank Wall Street
Reform and Consumer Protection Act (Dodd-Frank Act).
minimum interest charge disclosure thresholds under the CARD Act will remain
unchanged in 2015.
adjusted dollar amount for the penalty fees safe harbor under the CARD Act
in 2015 is $27 for a first late payment and $38 for each subsequent
violation within the following six months.
HOEPA loans, the adjusted total loan amount threshold is $20,391,
effective January 1, 2015.
adjusted statutory fee trigger for HOPEA loans is $1,020, effective
January 1, 2015.
January 1, 2015, for the purpose of creditor's determination of a
consumer's ability to repay a transaction secured by a dwelling, a covered
transaction is not a qualified mortgage unless the transaction's total
points and fees do not exceed:
- 3 percent of
the total loan amount for a loan greater than or equal to $101,953; $3,059 for
a loan amount greater than or equal to $61,172 but less than $101,953;
- 5 percent of
the total loan amount for a loan greater than or equal to $20,391 but less than
- $1,020 for a
loan amount greater than or equal to $12,744 but less than $20,391;
- 8 percent of
the total loan amount for a loan amount less than $12,744.