Today, Bloomberg reported that JPMorgan Chase has agreed to pay $389 million in penalties and restitution relating to claims by the OCC and CFPB that it improperly charged customers for credit-monitoring programs sold as add-ons to credit cards from 2005 through 2012. The Wall Street Journal reported that the payments are expected to settle claims that the bank failed to oversee outside companies that sold the add-on products. Â According to Bloomberg, regulators said the bank began charging customers before "obtaining the necessary written authorization." CFPB Bulletin 2012-06, dated July 18, 2012, addresses the marketing of card add-on products and identifies provisions of the Dodd-Frank Act, TILA/Regulation Z, and ECOA/Regulation B that may have been on the regulators' minds.
For further information visit Waller's Banking Law Blog
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.