FDIC to FIRST BANK OF DELAWARE, “Cease and Desist”
And pay restitution.
The Federal Deposit Insurance Corporation announced on December 3rd, a list of enforcement actions going back some months. On June 10th they ordered First Bank of Delaware to Cease and Desist from certain deceptive marketing practices and to pay restitution. The Order they made available lays out all the detail.
Copies of the orders referred to above can be obtained from or inspected at the FDIC’s Public Information Center, 3501 Fairfax Drive, Room E-1002, Arlington, VA (telephone 703-562-2200 or 1-877-275-3342). To view all orders online, visit the FDIC’s Web page at http://www.fdic.gov/bank/individual/enforcement/index.html.
In essence they operated their National Consumer Products division without adequate supervision. One of the companies they worked with appears to have been offering credit products in a way that was deemed deceptive by the government. This is one of the most highly regulated industries in the nation and all aspects fall under State and or Federal government review. They were ordered to terminate the relationships the bank had with these specific subprime lenders.
Within sixty (60) days of the effective date of this ORDER, the Bank shall develop and submit to the Regional Director of the FDIC’s New York Regional Office (Regional Director), for her non-objection in accordance with paragraph XIII.A of this ORDER, a comprehensive plan, with timelines, for the termination of all relationships with third-party providers and the termination of all third-party lending programs or any agreements or arrangements with third-party providers that exhibit the characteristics of a “Rent-a-BIN” or “Rent-a-ICA” arrangement, as referred to in the FDIC’s Credit Card Activities Manual, except for those third-party lending programs and third-party providers specifically identified in Exhibit “B” of the Consent Agreement.
The FDIC action report makes it sound like the bank was quite sloppy in overseeing this unit.
And finally, they must set aside $700,000 to backstop CompuCredit Corporation, Atlanta, Georgia (CompuCredit) in case they cannot pay all their ordered restitutions.
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First Bank of Delaware has closed the accounts of all of its Tribute MasterCard customers. In my case, I learned about it when I went to the website to pay my bill and learned I had a zero credit line after two years of a perfect payment record. It took a few phone calls (during which I was assured by various customer service reps that I am a “valued” customer) and some internet research to find out that all accounts had been closed. I’m very happy to know that First Bank of Delaware CEO Alonzo J. Primus thinks I’m such a valued customer. I’d hate to see how I would be treated if he didn’t value my business. First Bank of Delaware has zero regard for their customers and zero regard for any kind of responsible banking practices. Unfortunately for all of us, too many of our financial and banking leaders are criminals in good suits with big paychecks, but they are still criminals. Like someone once said, you can put lipstick on a pig, but it’s still a pig.
Dale,
Thanks for sharing your experiences with us. Keep us posted if anything new develops.
Russ
The same exact thing happened to me. However, I just paid my final balance, (which was less than $30) and figured, whatever, I’ll just do without a credit card. Then I logged onto the website to make sure my payment had been received(yes) and now they are still charging me for the $10/mo account maintenance fee! How much longer to people like me have to be punished for having bad credit? I have tried so very hard to get my credit back on track and have paid my bills responsibly since filing bankruptcy, and I just can’t seem to get a break!!!!! If anyone hears of any legal action being taken against these predators, please email me at the above mentioned address.
I received a letter account be closed but another letter stated new cards to be issued in November. I also emailed and an answer is that they are financially sound.
I had a Tribute card with them. Entered into a settlement and thought I was done with them. I just got contact by some company that says they bought all the Tribute accounts and are now collecting on them. Watch out and demand proof before you pay anything
I just pulled my credit report and find that I have a collection on it from CACH, LLC. There client is First Bank of Delaware whom you can not get on the telephone. I never borrowed any money from the bank and this collection agency, who is all over web for decptive practices never contacted me to validate the debt. This of course is a requirement by law.
CACH LLC is not collecting for First Bank of Delaware. First Bank of Delaware is not its “client.” CACH purchases defaulted accounts, probably for less than 2 cents on the dollar. CACH is collecting for itself. You need to dispute the debt. If they sue you, you need to defend yourself.
I was just contacted by a local company that serves people saying that SRS Legal Services is suing me. I contacted this SRS Legal Services company & they told me it is for a Master Card I took out more than 4 years ago through First Bank of Delaware. The problem is, I did not take out a Master Card partly due to my credit at the time! I’ve found some info pertaining to the FDC filing a C & D order on First Bank of Delaware back in October 3, 2008 & I’m curious if this C & D order pertains to this new sudden lawsuit I’m facing.
I don’t have the time or money to deal with this & would like to know what I can do please.
Thank you,
-Joe
Joe,
We’re sorry to hear about your recent experience. The DBB serves as an information source to the community and surrounding region. The information we provide is always at no cost to the general public; however some of the resources we link to may be private businesses or professionals that charge for services. I mention that only because you indicated that cost was a factor for you as well as some sort of resolution. You’ll need to do some research on what kind of plan you can put together that meets your needs. If the information we provide here on the DBB helps you, we would be happy learn that and would love to hear about that experience!
One resource you might consider is contacting the Attorney General’s Office Consumer Protection department (part of the Fraud Division). The objective of the programs and functions of Consumer Protection is the protection of the general public against consumer fraud and violation of consumer protection laws. There is also a section on that website that deals with Identity Theft.
http://www.attorneygeneral.delaware.gov/consumers/index.shtml
There may be other readers that can comment on your matter or give some helpful info; keep checking back!
Russel,
Thank you very much. 🙂 I wrote up a letter to the AG Office of my state (after posting my initial thread), concerning this as I did more research to find out that it appears to be someone pretending to be from this SRS Legal Services company but really isn’t! So I’m going to wait & see what the AG’s Office comes up with.
Thank you very much once again,
-Joe
Joe,
We’re glad to hear you are getting to the bottom of this. Keep us posted!
First bank of Delaware is offering the best CD rates in town. Are they safe to deal with?? Thanks.
Hi Denise,
We don’t review specific banks, we just help share information! On resource you have available to you here in Delaware is through the Bank Commissioner’s Office: State Chartered Banks (PDF) currently updated through October 14, 2011
If you have specific questions about how to use the list, or about a financial institution, we’d suggest you contact the Delaware Bank Commissioner’s Office:
Phone: (302) 739-4235 or (302) 577-6722
Fax: (302) 739-3609
Licensing/consumer complaints fax: (302) 739-2356
E-mail: Dawn.Hollinger@state.de.us
Thanks Russell! I was just so needing that information! I have been searching thru some lenders and had called a friend and she had gotten one from First Bank of Delaware. I had called her to find out how do you know that who you are giving all your very important information to is legit?? She wasn’t sure. I had clicked on there website and had seen all of this was going on so it concerned me! I read yours and thanks so much! You answered my questions on who I need to talk to! Thank you so much!
Melissa
scissiorgirl1972@yahoo.com
You’re welcome Melissa, and thanks for reading the DBB!
Hello. I have an issue with First Bank of Deleware. It started a few years ago when I was contacted by a law firm representing this DE Bank. I disputed and wrote the credit bureau and told them I had been a victim of fraud. I thought it was over until recently. Apparently, an account was opened in Jan ’10 and the same bank is involved. Mercantile Adjustment Bureau is trying to collect a debt but can’t tell me specifically where this account is too. I am not going to pay anything associated with FBofDE. Not sure as to what to do but get another credit report and disputed it again. I will not pay for something that proof isnt provided and I know I did not open. In fact, I know its not mine because during that time I was on a credit payment plan for debt and one of the stipulations was that I could not open any new accounts. Any advice, suggestions??
I have a company named LVNV FUNDING reporting on my credit report saying I owe them money from a credit card I supposedly opened with First Bank of Delaware. I have NEVER opened an account with them. When I called to get specifics about the account they said (and I quote) “We’re not required by law to provide you with that information” I proceeded to tell them B.S. When I asked to speak with a supervisor I was put on hold then hung up on, this has happened 7 times now, I repeat 7 times. It seems to me there is a scam going on that targets folks with lower credit scores.
I am getting phone calls harassing me and my family that says I am being sued and taken to court for a account with first bank of delaware. The call is coming from a 697 number. if i had an account it was more than 7 years ago with them. What can i do to protect myself from going to court? I have talked this person on the phone and made arrangements but they are still harassing me and my family. They are saying i defrauded them and i never did that.
Years ago before the military I had a credit card from first bank of Delaware. I entered a payment agreement to pay off the card and close it. Here I am 7 years later and I it shows up on my credit report as charged off transfered to another lender. I can’t find a number to call f.b.d. and get this cleared from my credit report. What can I do?
I’m dealing with the same issue, only I dont remember having a card and no way to verify. HELP
I am also receiving threatening calls from this bank over a balance owed on a card I never had. I’ve never even heard of this bank. They are also calling anyone with my last name and telling them I don’t pay my bills. I’ve never received a bill or statement from this group that shows any owed debt on my part. I do not use credit cards and have never contacted them for a card or done any type of business with them. I want to sue them for harrassment and fraud but I don’t know what to do. They have even threatened to send people to my house to “get the money out of me”. I made a report to my local sheriff’s department after this threat. They claim I owe $649.32. I have filed complaints with the FDIC and Consumer Financial Protection Bureau. I’ve also notified the Do Not Call Registry since my phone number is registered on their site. Any help on how to deal with this, which is obviously a scam would be appreciated.
Does anyone know a edward kingston collecting debt for bank of delaware from california wit a xxx-xxx-0795 #
It’s a scam. I got a call from California too here recently. Checked with my local court house and there is no lawsuit or anything. Courthouse clerk guaranteed me that any lawsuit or pay garnishment have to go through the courts and have to mail you a summons with a court date.
same thing happened to me it’s 2017 they talking about some credit card I supposedly had in 2007 wtf
Clarification, Dec. 24, 2017, 11:52 a.m.: The story also reported that First Delaware Bank originated ThinkCash loans for a fee, rather, the bank kept a portion of the interest on those loans. The story has also been updated to reflect Think Finance s claim that the FDIC cease and desist order did not apply to their relationship with First Delaware Bank.
Most definitely a scam, they just started calling me leaving messages telling me I had an account from 2001 until 2003. They won’t see not one dollar or upset me. I told them not to call my phone again with that mess. They want you to be afraid and ask where to send the money to stop the law suit. Tell fine I’ll see you in court.