Cross River Bank of Teaneck fined for unfair and deceptive practices

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The Federal Deposit Insurance Corp. has fined Teaneck-based Cross River Bank and San Mateo, Calif.-based Freedom Financial Asset Management $641,750 and $493,500, respectively, for unfair and deceptive loan practices in violation of federal law.The Federal Deposit Insurance Corp. has fined Teaneck-based Cross River Bank and San Mateo, Calif.-based Freedom Financial Asset Management $641,750 and $493,500, respectively, for unfair and deceptive loan practices in violation of federal law.

Cross River Bank issues loans through Freedom Financial Asset Management. Both companies will also have to reimburse customers up to a total of $20 million. 

The FDIC said illegal practices by Cross River and Freedom Financial included:

— requiring borrowers to sign loan documents without knowing the essential terms and conditions of the loan

— failing to inform borrowers some major creditors won’t negotiate debts,

— misrepresenting to consumers that C loans would result in the settlement of all their debts within certain periods, and

— misrepresenting that the consumers’ creditworthiness would improve by obtaining a C loan.