The Consumer Financial Protection Bureau today charged its largest enforcement action to date in taking action against Chase and J.P Morgan Chase for illegal credit card practices.
Under the consent order against the companies, the CFPB is requiring them to pay $309 million in refunds to more than 2.1 million customers.
Among the violations detected by the CFPB, Chase enrolled consumers in credit card add-on services such as monitoring credit and alerting consumers to fraudulent account activity. The add-on services were in many cases billed to consumer’s accounts prior to their written authorization, which is required under law.
This is the third action taken by the CFPB against credit card companies for unfair, deceptive and abusive practices.
“At the core of our mission is a duty to identify and root out unfair, deceptive, and abusive practices in financial markets that harm consumers,” said CFPB Director Richard Cordray. “This order takes action against such practices and requires Chase to fully refund more than $300 million to consumers who were charged illegal fees.”
The bank is being required to refund $309 million to customers and pay a $20 million penalty payment to the CFPB’s Civil Penalty Fund.
Chase has taken steps to correct the practices deemed unfair and deceptive, the CFPB noted, and has been issuing consumer refunds since October 2012.
Customers will be informed via a consumer advisory of the refunds being made available.
Written by Elizabeth Ecker
