The FDIC, a US regulatory body, has announced a settlement of $1.5 million with Bank of England, based in England, Arkansas, for causing significant harm to its customers. The bank deceived veterans by overcharging them for services and failing to provide the promised products. The FDIC found that one of the bank’s loan production offices falsely informed veterans that they could skip multiple loan payments when refinancing a Department of Veterans Affairs mortgage loan, violating the Federal Trade Commission Act. Additionally, the employees misrepresented the bank’s relationship with the VA. The FDIC is committed to holding the bank and its employees accountable for their illegal actions and ensuring that consumers are treated fairly. As a result of the FDIC’s investigation, the bank provided $1.9 million in remediation to over 900 affected consumers. In addition to violating the Federal Trade Commission Act, the bank also violated the Real Estate Settlement Procedures Act, the Fair Credit Reporting Act, and the Home Mortgage Disclosure Act. Bank of England has agreed to pay a civil money penalty of $1.5 million, and nine former employees have faced individual enforcement actions. One employee has been banned from the banking industry. According to Arkansas Business, Bank of England had assets of $412.8 million at the end of 2023 and reported net losses of $9.95 million and $3.86 million in 2023 and 2022, respectively.
