JP Morgan Chase & Co. is the biggest US bank by assets. The financial lender would pay USD389 million in penalties and restitution. This was after JP Morgan was alleged of unfairly charging customers for credit monitoring products. The bank was to settle the claim by paying penalties and charges to regulators.
The New York based bank would pay USD60 million to the Office of the Comptroller of the Currency (OCC). JP Morgan would also pay USD20 million to the Consumer Financial Protection Bureau (CFPB) in penalties. The payment with the consumer authority was for improperly billing customers for "add-on products", said the agencies in a statement last September 20. JP Morgan had already paid USD309 million worth of refunds. This was paid to 2.1 million customers, according to CFPB Director Richard Cordray.
The investigation was initiated by the OCC which showed JP Morgan had enrolled its customers in credit monitoring programs. The said credit monitoring programs were sold as add-ons to credits cards from October 2005 until June 2012, same the consumer bureau. The regulators added that the bank started charging its customers even before the necessary authorization was obtained.
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