ACI Payments, a subsidiary of ACI Worldwide, reached a $20 million settlement with 44 state agencies and 50 state attorneys general for a technical error that resulted in $2.3 billion in unauthorized borrower bank withdrawals.
On April 23, 2021, ACI Payments accidentally used real customer data during a test of its Speedpay platform. This led to unexpected and multiple mortgage payments being deducted from customer accounts. This potentially exposed them to fees for overdrafts and insufficient funds. Although most withdrawals were unsuccessful, 1.4 million transactions amounting to $2.3 billion were processed
Nearly 480,000 impacted mortgage holders were served by Mr.Cooper (formerly Nationstar Mortgage). Of those, about 100 incurred non-sufficient funds fees from their banks.
The Consumer Financial Protection Bureau previously issued ACI a $25 million fine for the same mistake.
Similar to its response to the CFPB fine, ACI Worldwide said it entered into this consent order “without admitting any wrongdoing, to avoid the expense and distraction of litigation.”
The settlement also includes implementing an enterprise risk management program and third-party risk management program tailored to the size and complexity of ACI.
Additionally, there is a two-year monitoring provision that requires ACI to report regularly to a state regulator monitoring committee to ensure compliance.
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