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SALT LAKE CITY — Zions Bank has agreed to pay $3.6 million to settle fraud allegations of providing payment processing services to telemarketing and internet merchants that were debiting money illegally from consumers’ bank accounts.
The U.S. Attorney's Office in eastern Pennsylvania alleged that Zions and Modern Payments provided debit processing services to companies that were engaged in consumer fraud. The government claimed that the bank and the payment processor knew about or were willfully blind to the scheme.
Modern Payments received $1.2 million in revenue from the fraudulent marketers, according to the government.
In addition to the $3.6 million penalty paid to the U.S. Treasury, Zions has set up a $37.5 million compensation fund for the fraud victims.
