OMAHA, Neb. – The Federal Deposit Insurance Corp. on Monday announced that it has terminated a consent order against World’s Foremost Bank, a Nebraska-based credit card bank operation set up by the outdoor outfitter Cabela’s.
The order was ended Nov. 4 but not publicly announced until Monday, according to the Lincoln Journal Star (http://bit.ly/1wXGVjz ). The original order in March required World’s Foremost Bank to pay a $1 million penalty and restitution to about 1.8 million cardholders for what the FDIC said were deceptive and unfair acts. The bank agreed to the sanctions but did not admit or deny the violations.
FDIC spokeswoman LaJuan Williams-Young told The Associated Press that a termination order typically indicates “that the bank has complied with the original stipulations” in the consent order. She declined to comment further about the specifics of either order. A bank representative didn’t immediately return messages from the AP.
In the March order, the FDIC said World’s Foremost Bank had to refund certain interest charges to cardholders and to repay others for credit card add-on services, such as identity-theft protection.
The restitution had to include refunds of all interest paid before the end of a 12-month interest-free period for cardholders who participated in zero per cent interest promotions. The Lincoln-based bank also had to refund premiums paid for LifeLock identity-theft protection by the 905 cardholders enrolled at the Cabela’s store in Fort Worth, Texas, between October and December 2012. The bank had to inform customers that enrolment in LifeLock is not a requirement for having a Cabela’s Club Visa card.
In March 2011 Cabela’s agreed to pay nearly $10.4 million and reform its credit card practices as part of a settlement with the FDIC over improper fees and other customer issues.
Information from: Lincoln Journal Star, http://www.journalstar.com