NC Bank To Pay $1.2M For Processing Online Payday Loans

Law360, New York (January 9, 2014, 4:22 PM EST) -- A North Carolina bank on Thursday agreed to pay $1.2 million to settle claims that it allegedly facilitated around $2.4 billion in fraudulent online payday loans just a day after federal prosecutors ensnared the bank in their broader crackdown on such practices.

The settlement, which awaits approval from a federal district judge in Raleigh, N.C., will see Four Oaks Fincorp Inc. and its bank subsidiary Four Oaks Bank and Trust Co. agree to changes in its "provision of banking services for some categories of merchants" after...
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