Chase Bank and JPMorgan Chase Ordered to Refund $309 Million for Illegal Credit Card Practices» Print This Page
- October 6, 2013
Chase Bank USA, NA and JPMorgan Chase Bank, NA were ordered to refund $309 million to its customers as a result of its illegal credit card practices. The order was issued by the Consumer Financial Protection Bureau (CFPB), and required refunds to more than 2 million current and former customers.
The illegal practices used by Chase Bank and JPMorgan Chase arose from selling “add on” products, which are the extra products and services for which customers paid but did not receive. For example, Chase Bank charged its customers for credit monitoring services even when the customer did not provide written authorization for those charges. Other services that were part of the scam included identify theft protection and fraud monitoring. Chase Bank also charged customers up-front, even when the customers were not yet receiving the services. This illegal conduct by Chase Bank extended from October 2005 through June 2012. The monthly charges typically ranged from $7.99 to $11.99, with some of these charges extending for years.
In addition to requiring the refunds, the CFPB order to Chase Bank required it to end its unfair billing practices, but also required it not only to issue a full refund of the charges, but also any interest and over-limit fees resulting from those charges. The order also required it improve oversight of third-party vendors, pay a $20 million fine to the CFPB, and submit to an independent audit to verify it was complying with the terms of the order.
For those customers who are still current customers of Chase Bank, the refund will be posted as a credit to their account. For former customers, Chase Bank will issue checks for the amount of the refund. Most of the refunds are expected to be paid out by the end of November.Share This