Settlement will require bank to pay $1 million
RALEIGH — Federal prosecutors say a North Carolina bank accused of promoting an illegal scheme to take money from consumers' bank accounts is paying $1 million to settle the complaint.
U.S. Attorney Thomas Walker said Tuesday that Four Oaks Bank and Trust signed a consent order resolving a civil lawsuit with his office.
The complaint said that between 2009 and 2013, Four Oaks used a third-party payment processor in Texas to help process transactions with fraudulent merchants.
All told, Four Oaks permitted the processor to originate nearly 10 million debit transactions, for a total of more than $2.4 billion against consumers' bank accounts.
The complaint says the bank ignored the risks associated with providing payment system access to a third-party processor that serviced fraudulent merchants, including large numbers of Internet payday lenders.