Banks Pressured to Settle in Online Lending Probe

September 26, 2013
American Banker 
The Justice Department is pushing banks that are under scrutiny for their ties to online lenders to reach a settlement soon, say four industry sources familiar with the matter. According to them, federal officials have issued subpoenas to about 50 banks and third-party payment processing firms suspected of fraudulently accessing customers' bank accounts. DOJ hopes to reach a settlement in upcoming weeks with one of the banks and then use the terms of that deal as a model in talks with other banks, the sources disclosed. Those terms might possibly include the subpoenaed bank agreeing to cease processing of certain kinds of payments, pay a fine, and undergo independent review.

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