Chase Ordered to Refund $309 Million to Credit Card Customers

What's Hot

Do This or Your iPhone Bill May SkyrocketSave

23 Upgrades Under $50 to Make Your House Look AwesomeAround The House

Trump Worth $10 Billion Less Than If He’d Simply Invested in Index FundsBusiness

11 Places in the World Where You Can Afford to Retire in StyleMore

What You Need to Know for 2017 Obamacare EnrollmentFamily

8 Things Rich People Buy That Make Them Look DumbAround The House

32 of the Highest-Paid American SpeakersMake

Amazon Prime No Longer Pledges Free 2-Day Shipping on All ItemsMore

More Caffeine Means Less Dementia for WomenFamily

9 Tips to Ensure You’ll Have Enough to RetireFamily

5 DIY Ways to Make Your Car Smell GreatCars

30 Awesome Things to Do in RetirementCollege

5 Spots Where Retirees Can Live for Less Than $40,000Real Estate

10 Ways to Pull Together the Down Payment for a HomeCredit & Debt

10 Ways to Reduce Your Homeowner’s Insurance RatesFamily

50 Ways to Make a Fast $50 (or Lots More)Grow

Yet another big bank is in trouble with the Consumer Financial Protection Bureau for the way it sold credit card add-on products to customers.

Yet another bank has been ordered to repay customers because of the way it pushed credit card add-on services — in this case identity theft products.

Last year, Discover was forced to refund $200 million to consumers and pay a $14 million fine. Capital One was fined $25 million and told to refund $140 million to customers. Now, it’s Chase’s turn.

The Consumer Financial Protection Bureau says JPMorgan Chase and Chase Bank “unfairly billed customers for services relating to identity theft protection products – including Chase Fraud Detector, Chase Identity Protection (ChIPs), and Chase Identity Protection (IPS) – in a way that violated federal law.”

Customers were charged fees ranging from $7.99 to $11.99 per month for such services without providing Chase authorization to enroll them, and in many cases they weren’t receiving all of the monitoring and protection services they were paying for, the agency says.

Some customers paid for years — as far back as 2005 — without a clue, the Los Angeles Times says.

The bank was ordered to refund $309 million to more than 2.1 million customers, the CFPB says. Chase has already done so: Consumers should have received refunds as an account credit or a check by December of last year.

It’s a good thing, too, because the bank now owes regulators a lot more money. On top of the refunds, Chase owes a $20 million penalty to the CFPB’s Civil Penalty Fund and $60 million in penalties to the U.S. Office of the Comptroller of the Currency, the CFPB says.

Meanwhile, in other Chase news, McClatchy reported:

Also Thursday, British and American regulators announced that JPMorgan Chase & Co. had admitted wrongdoing and agreed to pay nearly $1 billion in penalties for unsafe derivatives trading practices that resulted in $6 billion in losses for the bank in 2012, a debacle nicknamed “The London Whale.”

In another enforcement action Thursday, the company received a cease-and-desist order from the U.S. Office of the Comptroller of the Currency for using improper procedures to collect debt from customers of its credit card, auto-lending and student-lending services, as well as from military service members.

Overall, it’s been a pretty rough week for the company. But if it could afford to pay CEO Jamie Dimon $11.5 million last year, it should be able to cope, right?
Stacy Johnson

It's not the usual blah, blah, blah

I know... every site you visit wants you to subscribe to their newsletter. But our news and advice is actually worth reading! For 25 years, I've been making people richer without making their eyes glaze over. You'll be glad you did. I guarantee it!


Read Next: Taco Bell Is Handing Out Free Food for World Series Stolen Bases

Check Out Our Hottest Deals!

We're always adding new deals and coupons that'll save you big bucks. See the deals to the right and hundreds more in our Deals section.

Click here to explore 1,675 more deals!