JPMorgan Chase & Co. agreed to pay $25 million to customers allegedly misled about credit-protection products ― for auto, credit card, and mortgage ― and $2 million to the Office of the Comptroller of the Currency, which investigated the matter.
The OCC claimed the bank violated the Federal Trade Commission Act in marketing its Chase Payment Assurance product. Specifically, the OCC complaint centered on certain credit protection products ― debt-cancellation contracts and debt-suspension agreements ― sold by Chase Auto Finance, Chase Card Services, and Chase Home Lending. The auto products, sold from January 2008 through May 2009, allowed customers to cancel or suspend payments on their auto loans in events like death or unemployment.
According to the OCC’s complaint, Chase Auto’s customer service representatives used “certain high-pressure sales tactics and made materially false, deceptive or otherwise misleading oral statements relating to the cost and coverage terms of the CPA product.”
The bank stopped marketing the CPA product in 2009.
JPMorgan Chase neither admitted nor denied wrongdoing in the case. It has since revised sales scripts and marketing materials for its payment protection products. Also, Chief Executive Jamie Dimon tapped card services CEO Gordon Smith to oversee auto and student lending, a responsibility formerly held by Charles Scharf, CEO of Chase’s Retail Financial Services unit.
Click here for the OCC Consent Order.
Why no mention of the actual revenue received by the bank from the customer abuse? Where are the good reporters that should ask these questions?
If it was more than $27 million then it paid to be abusive. If it was less, then maybe someone at Chase will pay attention.
Did anyone get a bonus payment even remotely tied to the revenue? Did they have to give it back?
It is all about trust.Why should anyone trust the big bank that are in the news constantly for items like this, mortgage abuse, etc.
No wonder that “bankers” are now considered to be the third lowest respected jobs in the US per the media.
The gps business is getting ready to go thru the same problem selling gps units that will not work. The new
4G High Speed Light Sguare will interrup the gps signal leaving YOUR investment worthless