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The Bancorp Bank to pay $2M penalty over card transaction fees

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The Bancorp Bank to pay $2M penalty over card transaction fees

The Federal Deposit Insurance Corp. ordered Wilmington, Del.-based The Bancorp Bank to pay a civil money penalty of $2.0 million, after the regulator found it to have engaged in "unfair and deceptive practices," as well as alleged violations of the Electronic Funds Transfer Act, the Truth in Savings Act and the Electronic Signatures in Global and National Commerce Act.

The bank must also pay restitution of almost $1.3 million to customers who were overcharged transaction fees on their stored-value cards. Approximately 243,000 customers may have been affected.

Parent company The Bancorp Inc. had earlier recorded $2.5 million in accrued expenses, in anticipation of the FDIC's order. It attributed the overcharging to a systems glitch in a third-party payment processor.