The Federal Deposit Insurance Corporation (FDIC) has issued a cease and desist to the Rocky Mountain Bank and Trust for “unsafe or unsound banking practices”. As you may know from reading this site, a large percentage of debt settlement companies use the Rocky Mountain Bank and Trust, usually in conjunction with Global Client Solutions (GCS), to store client monies used for settlements. The FDIC appears to think that this business practice is unsafe to the consumer and has issued a cease and desist to Rocky Mountain that you can read here.
The 28 page document goes on to outline some of these unsafe practices:
1. Operating the Bank with an excessive level of adversely classified assets.
2. Operating the Bank with a large concentration of deposits to one entity.
3. Operating the Bank without establishing appropriate policies and procedures for liquidity, BSA monitoring, compliance with consumer laws and regulations, and Information Technology.
4 Operating the Bank with an inadequate level of capital protection for the kind and quality of assets held by the Bank.
The FDIC then goes on to order Rocky Mountain to perform numerous steps to remedy this situation (about 10 pages worth of items). Rocky Mountain Bank and Trust and Global Client Solutions have both also been listed in class action lawsuits against debt settlement companies in the past few months. It will be interesting to see how, and how quickly, they can remedy this situation.
{ 4 comments… read them below or add one }
dmb financial took my money to settel a chase acct deposited inn to Rocky mountain bank my dept was never paid and dmb could care less so leagle acction is the next step over 12 months
debt 1 solutions is a scam since I have started with them, I now have 2 lawsuits and a wage garnishment thanks to them, I don’t believe they did anything to help me out, lots of run around
never talked to same person when I called very disappointing
How can I join the Class Action Suit against Global Client Solutions?
hoew do i file a lawsuit agaisnt them? they took my money for over 2 years.
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