The Office of the Comptroller of the Currency hit The Federal Savings Bank in Chicago with a consent order this month, alleging deceptive acts or practices in its advertising to veterans.

The Federal Savings Bank instructed millions of consumers to contact the bank because they had “available funds,” according to the OCC.

However, the advertisement was a solicitation for a Veterans Affairs Department cash-out refinance loan, the OCC alleged, and consumers needed to apply for a new loan to access the funds.

Additionally, some employees of the $1.1 billion-asset lender allegedly made deceptive statements to consumers, creating the impression that the interest rate or monthly payment associated with the loan would decrease over time. But the bank couldn’t guarantee this, because the cash-out refinance loan was a permanent loan with a fixed interest rate and payment, the OCC said.

“The Bank’s deceptive statements induced consumers to obtain VA cash-out refinance loans, which resulted in certain consumers paying significant origination fees and receiving refinanced mortgage loans with significantly increased interest rates and monthly payments,” the consent order said.

The Federal Savings Bank did not immediately respond to a request for comment.

The bank consented to the order, but neither admitted nor denied its findings. The bank is taking “corrective actions to remedy the deficiencies identified in this order,” the OCC said.

The bank must also pay restitution to harmed customers. It must work with a restitution consultant to prepare a methodology to identify those affected and how much is owed to each of them.

The Federal Savings Bank was founded by Stephen Calk, an economic adviser to Donald Trump during his 2016 presidential campaign.

Calk was convicted in 2021 of financial institution bribery and conspiracy to commit financial institution bribery “for corruptly using his position as the head of a federally-insured bank to issue millions of dollars in high-risk loans to Paul Manafort in exchange for personal benefit,” according to the Justice Department. Calk was sentenced to one year and one month in federal prison.

His brother, John Calk, has been CEO and chairman of The Federal Savings Bank since 2019.

The OCC in 2021 ordered the bank to boost its risk management controls and improve its anti-money laundering and consumer compliance standards.