*FOR IMMEDIATE RELEASE FROM
**THE* *WASHINGTON DEPARTMENT OF FINANCIAL INSTITUTIONS*

*Tuesday, Oct. 17, 2023
**CONTACT*:  
Lyn Peters, DFI Director of Communications
PH 360-902-8731, [email protected]

James Brusselback, DFI Acting Enforcement Chief, Division of Consumer Services
PH 360-902-8809, [email protected]

*WA DFI ENTERS MULTI-STATE SETTLEMENT WITH ACI PAYMENTS, INC. FOR UNAUTHORIZED TRANSACTIONS *

*"ACI Payments agrees to pay combined fines of $20 million to state regulators and state attorneys general and to maintain a comprehensive risk management program"*

OLYMPIA – The Washington State Department of Financial Institutions (DFI) joined regulators from 43 other states and entered a legal settlement with ACI Payments, Inc. (ACI) imposing $10 million in fines and affirmative action requirements for initiating unauthorized electronic transactions. Additionally, 50 state attorneys general, including Washington State Attorney General Bob Ferguson, levied $10 million in fines against ACI, in coordination with state regulators for a total combined fine of $20 million.

ACI, a subsidiary of ACI Worldwide Corp., is a state-regulated money services business licensed in Washington and nearly all other U.S. states (NMLS ID 936777). ACI acted as a vendor for a mortgage servicing company to regularly process mortgage payments for borrowers through its Speedpay Platform. The state regulators determined that ACI erroneously used live customer data in a test of its Speedpay Platform, causing unauthorized mortgage payments to be processed from customer accounts. Adverse consequences experienced by 9,833 impacted Washington consumers were addressed by ACI prior to entry of the settlement.

The state regulators commenced a multi-state money transmission investigation reviewing all aspects of the event. The state regulators believe that the error was possible due to defects in ACI’s privacy and data security procedures and technical infrastructure.

“Washington will use its enforcement authority against companies that fail to have sufficient data security and internal controls in place to protect Washington consumers,” DFI Director Charlie Clark said. “This settlement demonstrates how state regulators and state attorneys general can work together to hold companies accountable, and to ensure consumers can confidently and securely pay their loans online without fear of unauthorized payments being made on their behalf.”

This enforcement action orders ACI Payments, Inc. to do the following:


* Risk and Compliance Programs – Maintain a comprehensive Enterprise Risk Management Program and a Third-Party Risk Management Program tailored to the nature, size, complexity, and risk profile of ACI.
* Agreement Monitoring – Regular reporting (for two years) to a state regulator monitoring committee to ensure both the adequacy of the risk management programs and compliance with the order.
* Administrative Costs and Penalties – Payment of $10 million in fines for administrative costs and penalties.

*Documents*


* Settlement Agreement and Order [ [link removed] ]

###

*About DFI* ▪ www.dfi.wa.gov [ [link removed] ] ▪ 360-902-8700 ▪ 877-RINGDFI (746-4334)

The Washington State Department of Financial Institutions regulates a variety of financial service providers such as banks, credit unions, mortgage brokers, consumer loan companies, payday lenders and securities brokers and dealers. The department also works to improve financial education throughout Washington through its outreach programs and online clearinghouse www.dfi.wa.gov/financial-education [ [link removed] ]. In addition to posting information about licensees and administrative actions, DFI uses the Web and social media to provide financial education information: www.facebook.com/wadfi ■ [ [link removed] ] ■ www.instagram.com/wastatedfi/ [ [link removed] ] ■ www.linkedin.com/company/state-of-washington-department-of-financial-institutions/ [ [link removed] ] ■ twitter.com/dficonsumers [ [link removed] ] ■ [link removed] ■ [link removed] ■ www.homeownership.wa.gov [ [link removed] ]  

*About the Division of Consumer Services* ▪ www.dfi.wa.gov/cs [ [link removed] ] ▪ 360-902-8703 ▪ 877-746-4334, x 8703 The mission of the Division of Consumer Services is to protect consumers from illegal and fraudulent lending practices. The division accomplishes its mission through licensing, licensee examinations, investigations, and enforcing selected state and federal statutes and rules. Consumer Services regulates the business activities of consumer loan companies, mortgage brokers, money transmitters and currency exchangers, as well as check cashers and sellers, also known as "payday lenders." The Division is entirely self-supporting, with funding provided by licensing, auditing, and policing of regulated businesses and individuals. No money is received from the state General Fund or other public revenue source.

________________________________________________________________________

 DFI logo [ [link removed] ]  

STAY CONNECTED: Visit us on Facebook [ [link removed] ] Visit us on Twitter [ [link removed] ] Visit us on YouTube [ [link removed] ] blog [ [link removed] ] Sign up for email updates [ [link removed] ]

SUBSCRIBER SERVICES:
Manage Preferences [ [link removed] ]  |  Unsubscribe All [ [link removed] ]  |  Subscription Help [ [link removed] ] | Contact DFI  [ [link removed] ]

________________________________________________________________________

This email was sent to [email protected] using GovDelivery Communications Cloud on behalf of: Washington State Department of Financial Institutions · 150 Israel Rd SW  · Tumwater, WA 98501 GovDelivery logo [ [link removed] ]