Credit card customers’ windfalls over wrongful Chase charges
Sept. 19 was not a happy day at the headquarters of JPMorgan Chase. First, the bank had to pay fines of $910 million over failings in the supervision of a rogue trader, the so-called London Whale. Then, just hours later, it agreed to pay a further $309 million to more than 2.1 million of its credit card customers who had been inappropriately charged for services. An additional $80 million in civil money penalties was payable to two federal regulators over those card-billing issues.
Chase billed some of its credit card customers $7.99-$11.99 a month for fraud monitoring or identity-theft protection services when it shouldn’t have, according to a Consumer Financial Protection Bureau press release. The bureau alleges that sometimes consumers hadn’t properly agreed to participate in the programs, and sometimes the services were not delivered, either wholly or in part.
Bill Wallace, head of operations for Chase’s consumer and community banking division, said in a statement issued the same day that those who’d been affected had already received refunds or credits.
“We stopped new enrollments in these products in mid-2012 and will fully exit them by the end of this year,” Wallace said. “Any mistakes like these are regrettable and we are committed to ensuring our partners and vendors hold themselves to the same high standards that our customers expect of us.”
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