The Federal Deposit Insurance Corporation on Tuesday announced a settlement with Delaware-based Comenity Bank and Comenity Capital Bank of Salt Lake City, Utah, for deceptive practices related to the marketing and servicing of credit card “add-on products.” The banks are both wholly-owned subsidiaries of Ohio-based Comenity, LLC.
As part of the settlement, Comenity Bank will pay a civil money penalty of $2 million and provide restitution of approximately $53 million to harmed consumers. Comenity Capital Bank will pay a penalty of $450,000 and provide restitution of approximately $8.5 million to consumers. The violations occurred between January 2008 and September 2014
