A Missouri bank has been order to pay $5 million in restitution to nearly 21,000 consumers for deceptive marketing practices related to transferring the balance of credit cards, the Federal Reserve said Thursday.
The Fed issued a consent order against Mid America Bank and Trust Co. of Dixon, Mo., for deceptive practices in violation of sec. 5 of the Federal Trade Commission Act, the bank regulator said. The order was related to “balance transfer credit cards issued to consumers by Mid America through third parties,” according to a release issued by the Fed.
Under the terms of the order, the $158 million bank must refund fees paid by cardholders related to the deceptive marketing practices. For certain consumers, the Fed said, the bank must refund the the total qualifying payments and waive the remaining transferred balance.
The bank must also, according to the Fed order, “take other corrective measures to remediate consumers’ injuries, improve consumer compliance programs, and avoid violations of section 5 of the Federal Trade Commission Act in the future.”