Delaware Business Blog

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 FDICs 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 FDICs 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.

15 thoughts on “FDIC to FIRST BANK OF DELAWARE, “Cease and Desist”

  1. Dale

    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.

  2. Lynda Woods

    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.

  3. Linda Shuey

    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.

  4. Valerie Mitsunaga

    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

  5. Sanford Kreisler

    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.

  6. Douglas Bowman

    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.

  7. Joe

    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

    1. Russell Post author

      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!

  8. Joe

    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

    1. Russell Post author

      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

  9. Melissa

    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

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <strike> <strong>