FDIC lifts Northwest Savings Bank consent order
The Federal Deposit Insurance Corp. has terminated its consent order with Northwest Savings Bank, holding company Northwest Bancshares Inc. said Friday in a regulatory filing.
The order, issued Aug. 8, 2011, said the FDIC “has reason to believe” Northwest engaged in unfair or deceptive practices, violating Section 5 of the Federal Trade Commission Act. Northwest neither admitted nor denied any accusations in agreeing to the consent order.
The FDIC required Northwest to strengthen its consumer compliance management system. The agency fined the bank $325,000 and required it to pay up to $375,000 in restitution to customers who did not receive full interest payments as described in bank disclosures.
The FDIC may request “an informal regulatory understanding” to ensure Northwest’s consumer compliance regime is maintained, Northwest Bancshares said.
In March, Forbes named Northwest Bancshares one of “America’s Most Trustworthy Companies.”