New Jersey Authorities Fine ACI Payments Combined $20M for Data Misuse Impacting 480,000 People

$20 Million Multistate Enforcement Hits Company for Data Misuse Affecting 17,579 New Jersey Residents

TRENTON — The New Jersey Department of Banking and Insurance (NJDOBI), along with 43 other state financial agencies and 50 state attorneys general, has settled with ACI Payments, Inc. for initiating unauthorized transactions from mortgage accounts. In total, state regulators have levied $20 million in fines against the company, which wrongfully processed transactions totaling $2.3 billion and affected 480,000 mortgage holders nationwide.

ACI Payments, a subsidiary of ACI Worldwide Corp., is licensed in New Jersey to provide money services. The company partnered with Mr. Cooper, a mortgage service business, to offer a payment product called Speedpay. The controversy arose when ACI Payments incorrectly used live customer data during a test, triggering multiple mortgage payments in some instances and exposing consumers to overdraft or insufficient funds fees.

Local Impact

Acting Commissioner Justin Zimmerman emphasized, "New Jersey homeowners need the assurance that the companies that have access to their hard-earned money are acting properly. This company initiated illegal transactions from the accounts of more than 17,000 New Jersey mortgage holders." 

Zimmerman noted that while restitution has been made to those who had funds wrongly withdrawn or suffered fees, the situation underscores a company's need to act responsibly.

According to authorities, 17,579 New Jersey mortgage holders had transactions initiated without authorization. Transactions totaling $118 million were initiated among these consumers, but funds were only withdrawn from one individual's account. A further 82 New Jersey residents incurred fees because of the unauthorized transactions.

"Payment systems that promise fast and speedy bill processing must never be compromised by exorbitant risk and shoddy compliance," stated Attorney General Matthew J. Platkin. 

He highlighted the responsibility companies operating in electronic bill payment services have to consumers, ensuring no financial harm through faulty automated clearinghouse withdrawals.

Enforcement Measures

The multistate investigation into the incident has led to several mandates for ACI Payments, Inc., including:

• Risk and Compliance Programs: The company is ordered to maintain a comprehensive Enterprise Risk Management Program and a Third-Party Risk Management Program.
• Agreement Monitoring: ACI will report regularly for two years to a state regulator monitoring committee to verify the adequacy of their risk management programs and compliance with the order.
• Administrative Costs and Penalties: ACI Payments is fined $10 million, which after administrative costs, will be equally distributed among participating states.

The NJDOBI and other state financial regulators oversee more than 33,000 nonbank financial service companies. New Jersey residents can file complaints about such companies by contacting the department’s Consumer Inquiry and Response Center at 1-800-446-7467 or by visiting NMLS Consumer Access for company credentials and past enforcement actions.