Home > Uncategorized > OCC Assesses $60 Million Penalty Against JP Morgan Chase, Orders Bank to Reimburse Consumers for Unfair Billing Practices

OCC Assesses $60 Million Penalty Against JP Morgan Chase, Orders Bank to Reimburse Consumers for Unfair Billing Practices

Tough day for JP Morgan Chase. 

The Office of Comptroller of the Currency (“OCC”) today assessed several penalties by virtue of consent order, totaling hundreds of millions of dollars in penalties.

 

One such consent order imposed a $60 million penalty against JP Morgan Chase and ordered the Bank to make restitution to millions of consumer who were unfairly billed for, and paid for, identity theft that they did not receive.

According to its website, “The OCC found that the bank’s billing practices violated Section 5 of the Federal Trade Commission (FTC) Act, 15 U.S.C. § 45(a)(1), which prohibits unfair and deceptive acts or practices.”

 

The $60 million civil money penalty reflects a number of factors, including the scope and duration of the violations and financial harm to consumers from the unfair practices. The penalty will be paid to the U.S. Treasury.

 

The restitution ordered by the OCC will benefit consumers who, between October 2005 and June 2012, enrolled in and paid for identity theft protection products but did not receive the full benefit of the products.

 

The restitution will include the full amount paid for these products, plus any associated over-limit fees, and finance charges. The OCC believes that there are approximately 2.1 million harmed consumers, and fees and charges subject to restitution total approximately $309 million.

See the Consent Order: http://www.occ.gov/static/enforcement-actions/ea2013-141.pdf

 

See another Consent Order issued today http://www.occ.gov/static/enforcement-actions/ea2013-138.pdf  that reflects findings  that JP Morgan Chase engaged in  “unsafe or unsound practices in connection with the bank’s non-home loan debt collection litigation practices and the bank’s non-home loan compliance with the Servicemembers Civil Relief Act (SCRA).”

 

Again, tough day for Chase.

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