Utah Bank Fined for Deceptive Practices

TAB Bank to pay $315,000 fine for illegal fees

A key federal regulator has ordered a Utah-based bank to pay a $315,000 fine for illegal practices.

According to a consent order with the Federal Deposit Insurance Corporation (FDIC), Transportation Alliance Bank, or TAB Bank partnered with several nonbank lenders on short-term loan products. These products purported to be interest-free if paid in full in 90 days, but customers were charged a $40 fee for the loans regardless of when they paid them in full.

The FDIC found TAB's practices to be deceptive, but the terms of the consent agreement do not require TAB to confirm or deny that they engaged in deceptive practices.

The loan products in question were offered by lenders including EasyPay, Sunbit, Integra, FlexLending, Snap Finance, and Mission Lane. The loans were used to finance car repairs and veterinary expenses, among other emergency lending purposes.

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