All articles tagged with #citizens bank
The Federal Government has taken over Citizens Bank of Sac City, a failing Iowa bank, due to significant losses tied to out-of-state loans in a specific industry. The FDIC shut down the bank, and its assets were taken over by Iowa Trust and Savings Bank, which reopened the two branches.
Citizens Bank, a 94-year-old establishment in Sac City, Iowa, has closed due to significant out-of-state loan losses. The FDIC has assumed all deposits and most assets of the bank, which will be operated by Iowa Trust & Savings Bank. Customers' money is safe, with all deposits transferred to the new bank, and access to funds, direct deposits, and online banking will continue as normal. This is the first bank closure in Iowa since 2011.
Iowa Trust & Savings Bank in Emmetsburg, Iowa, has assumed all of the deposits of Citizens Bank in Sac City, Iowa, after the latter was closed by the Iowa Division of Banking. The FDIC has been appointed as the receiver and entered into a Purchase and Assumption Agreement with Iowa Trust & Savings Bank to protect depositors. The two branches of Citizens Bank will reopen as branches of Iowa Trust & Savings Bank, and depositors can access their money through checks, ATMs, or debit cards. Customers do not need to change their banking relationship to retain deposit insurance coverage. The FDIC estimates the cost to the Deposit Insurance Fund will be $14.8 million.
Citizens Bank has agreed to pay a $9 million civil money penalty to resolve allegations that it violated consumer financial protection laws and rules that protect individuals when they dispute credit card transactions. The Consumer Financial Protection Bureau (CFPB) alleges that the bank failed to properly manage and respond to customers’ credit card disputes and fraud claims, violating the Truth in Lending Act and its implementing Regulation Z. The CFPB will be closely watching the conduct of the credit card industry as outstanding credit card debt approaches $1 trillion.