Chase Bank USA, JP Morgan Chase Bank
Enforcement, Add-On Products, Credit Cards
In September 2013, the CFPB, in coordination with the Office of the Comptroller of the Currency (OCC), issued a consent order to JPMorgan Chase for “deceiving millions of customers into buying costly and unneeded services when they signed up for credit cards.” JPMorgan Chase was ordered to refund $309 million to approximately 2.1 million customers “duped into paying for credit monitoring and other add-ons between October 2005 and June 2012.” JPMorgan Chase also agreed to pay $80 million in civil penalties.
JPMorgan Chase was ordered to pay $309 million “to reimburse about 2.1 million consumers who were duped into paying for credit monitoring and other add-ons between October 2005 and June 2012. Those consumers enrolled in and paid for identity-theft protection products but did not receive the full benefit of the products, according to the Office of the Comptroller of the Currency.”
According to the CFPB, JPMorgan “charged consumers for credit-monitoring products before the bank had obtained written authorization to perform the service, a violation of the law. In many cases, the bank never received authorization but started billing customers for the service all the same.”
As part of the agreement, JPMorgan paid a $60 million civil penalty to the OCC, while the CFPB “levied a separate $20 million penalty.” [Danielle Douglas, “JPMorgan fined $389 million for deceptive credit card practices,” The Washington Post, 09/19/13]