JPMorgan Chase & Co. (JPM) will pay a $2 million fine to the Comptroller of the Currency and $25 million to reimburse customers after using “high pressure” tactics to sell credit insurance on car loans.
The bank’s customer-service representatives deceived borrowers about costs and terms of credit protection offered to cover missed payments in 2008 and 2009, the OCC said in a settlement document released today.
“Chase Auto used written scripts together with oral high-pressure sales tactics that included statements which were materially false, deceptive or otherwise misleading in violation of the Federal Trade Commission Act,” the regulator said in a statement.
JPMorgan didn’t admit or deny wrongdoing. In consultation with the OCC, the firm developed a plan to reimburse customers and fix deficiencies in credit protection linked to Chase auto, home and credit-card loans, the OCC said. Chase advertised the car-loan product, known as the Chase Payment Assurance plan, as a way to cancel some or all monthly payments in case of accidental death, disability, involuntary unemployment or a leave of absence.
No comments:
Post a Comment