The Federal Deposit Insurance Corporation has fined Arkansas-based Bank of England $129,800 for "deceptive" misrepresentations about loan terms made by one of the bank's offices in Michigan.
Bank loan officers at a location in Bloomfield, a suburb of Detroit, misrepresented to customers that certain Veterans Administration refinance loan terms were available when they were not, the FDIC said in its October administrative enforcement actions report.
More: Read the FDIC order.
The FDIC reported that the bank violated Section 5 of the Federal Trade Commission Act, which bans “unfair methods of competition."
Bank of England waived its right to a hearing on the matter and agreed to pay the civil penalty without admitting or denying violations of law or regulations, according to the FDIC.
The company said in a written statement that the penalty arose from "improper actions by several former employees" in 2019.
"This branch office was closed and those employees are no longer employed by the bank," the statement says. "Bank management condemns the actions of these former employees. Bank of England has enhanced its policies and procedures to prevent actions of this nature and to protect our customers.”