A consent order issued in 2019 with SunTrust Bank (Atlanta) over unfair and deceptive practices as the bank prepared for a merger with BB&T Corporation (Winston-Salem, N.C.) was terminated Thursday by the Federal Reserve Board, the Fed announced.
The 2019 order was issued the same day that the Fed said it had approved SunTrust’s merger with BB&T to create a newly named Truist Bank (Charlotte, N.C.) that would operate under the BB&T charter. The order cited SunTrust for violations related to the operation and billing for certain add-on products between 2013 and 2017, noting also that SunTrust had previously terminated the unfair and deceptive practices and had repaid some $8.8 million in fees to customers.
The Fed conditioned its merger approval on, among other things, BB&T’s divestment of 30 branches and more than $2.4 billion in deposits to mitigate the merger’s competitive effects. The Fed noted also that BB&T committed that Truist Bank would comply with the enforcement action naming SunTrust, including implementing procedures to verify the refunds and providing additional refunds, if required.
Federal Reserve Board announces termination of enforcement action with SunTrust Bank
RR: Agencies OK SunTrust/BB&T merger – but at cost of consent order for ‘unfair, deceptive practices,’ shedding branches, deposits (Nov. 19, 2019)