Fed terminates 2018 order with Community Trust Bank (KY)

A consent order that required Community Trust Bank of Pikeville, Ky., to pay some $4.75 million in restitution to about 11,000 consumers, plus make consumer compliance improvements, related to the bank’s offering of deposit account add-on products was terminated Monday by the Federal Reserve Board, the Fed said in a release Tuesday.

The Fed in the July 25, 2018, order said the bank violated section 5 of the Federal Trade Commission Act in its offering of deposit account add-on products to consumers. It said the bank represented to consumers that all of the add-on product benefits would be effective upon enrollment; however, consumers had to take additional steps to receive some of their benefits. In the order, the Fed said the bank did not adequately disclose the additional steps prior to enrollment and did not explain to consumers that they would be billed regardless of benefit activation.

Federal Reserve Board announces termination of enforcement action with Community Trust Bank

July 25, 2018, consent order