JPMorgan Settles Claims Of Using High-Pressure Tactics On Customers

(AP) WASHINGTON — JPMorgan Chase Bank has agreed to pay $2 million to settle federal regulators' civil claims that it used high-pressure tactics and false statements to get auto loan customers to buy contracts that would suspend or cancel loan payments in case they lost their job.

The Office of the Comptroller of the Currency, the Treasury Department agency that oversees national banks, announced the fine Wednesday for how the credit protection product was marketed in 2008 and 2009 by its Chase Auto Finance division.

The bank neither admitted nor denied wrongdoing under the settlement agreement.

In 2009, JPMorgan Chase Bank stopped selling the credit protection contracts, which carried a monthly fee, as well as a similar product for home mortgage borrowers. JPMorgan previously reimbursed affected customers for about $25 million.

Comments

[FancyPeter]

07:03 AM on 06/17/2011

Customers have not much to say, and never had

___
http://better-loans.blogspot.com

[jmarworth]

07:21 PM on 06/16/2011

Banks, along with government and religion, are the most evil institutions invented by
human beings.

[onelobo53]

07:10 PM on 06/16/2011

The saddest part about the whole bank thing is when we bailed the banks out, instead of investing in America and offering loans to jumpstart the economy , the banks used the money to buy into European banks.
Now if Greese fails the trickle down devaluation of the Euro will make our banks loose huge amounts of capitol. When this happens are they going to expect us to bail them out again??
Guess more bonuses are going to "The Masters of the Universe".

[Charles Deihl]

06:24 PM on 06/16/2011

Banks - Loan Sharks there really is no difference,well maybe just one,Banks are Legalized Crime.

[Justthom]

06:20 PM on 06/16/2011

I bet that the fine didn't go to those that were scammed, did it?

[jstghost]

05:09 PM on 06/16/2011

I tell you Chase is a funny bank to work with. I have a auto loan with them, and make payments by the computer. I make extra pronciple only payments twice a month. At first I was doing OK, then all of a sudden I had to call the bank do to something not right with the payment. Seemed that every month they changed there payment page to read different, when I called the bank about 6 times, each rep gave me a different story as to what was happening. So finally instead of making extra payments on the same day I wait a couple of days and send the money in. For a large bank they sure do make it difficult to make all the extra principle payments. I watch them real close and keep every thing in file just in case they screw up. I believe they are a bank to watch real close, from what I was running into.

[Sean Laney]

01:23 PM on 06/17/2011

Refinance your car through a credit union. Stop feeding the beast.

[lmaar2]

03:55 PM on 06/16/2011

The comments being posted about this article are exasperating. While the big banks are guilty of a lot of things, NO ONE HAD TO BUY THIS CREDIT PROTECTION. JP Morgan Chase may have used high-pressure sales tactics, but the last I checked, the consumer could still say NO. No one had a gun put to their head. Someone can only take advantage of you if you let them. Every consumer that bought the protection had a chance to say no.

[ivanhoemb]

04:03 PM on 06/16/2011

Yes, I know what you mean. But it has been a long time since caveat emptor was the general rule. Now, everyone must be protected from themselves. It is a bit sad, I think. Such a nanny attitude tends to erode personal responsibility. It is a poor reflection on modern life.

[LunaFlight]

05:02 PM on 06/16/2011

Depends on exactly how they did this. If they made the customer think they had to buy this insurance in order to get the loan I think they went over the line as far as being fair and honest.
What is vebally said to the customers is what I'd like to know. You might be right in what you say, still, I don't feel sorry for these creeps that feel they must take advantage of everyone they can. Also the tactics they used were probably lies and deciept and I think this is were they got in trouble and were made to pay.

[lmaar2]

09:27 AM on 06/17/2011

I agree. The article doesn't give you enough information to know what exactly JP Morgan did to sell the credit protection. If it was just high-pressure sales tactics like the article said, well, then people could have just said no. If JP Morgan lied or misrepresented facts to sell the protection, that's a different story. My comment was driven by some of the posts I saw that were so ridiculous, implying all banks are evil and every single consumer was an innocent victim. None of us would have homes without the banking system and some (before everybody goes nuts, I said SOME) of the blame of the mess we are in has to go to consumers who wanted things they really couldn't afford and are now mad at the banks who actually gave them what they wanted.

[gcymru5491]

03:48 PM on 06/16/2011

See "Too Big to Fail." America is being screwed royally by the Corp. Brotherhood.

[TXfemmom]

03:38 PM on 06/16/2011

Oh, and $2 million dollars is nothing for Chase.  Why didn't the government make them refund all the fees they collected to the customers, as well?

[kvs9020]

04:10 PM on 06/16/2011

Read the last line of the article about customers being reimbursed 25 million....

[Bobcheesedoodle]

05:48 PM on 06/16/2011

The reading comprehension level in Texas is somewhat on the low side.

[usmc32yr]

03:38 PM on 06/16/2011

Remember folks ,No one can pressure you into anything unless you let them .....If you feel uncomfortable or unsure about something ,tell them to back off ,then LEAVE ,sleep on it ....You will find you make much better decisions ....Anytime you have to "act now" that is red flag ...

[tnash26170]

03:56 PM on 06/16/2011

Great advice in hind sight. What we had with overbuying in the real estate market of 2003-2007 was a feeding frenzy, that if you didn't make an offer now, you would miss out. Like in all bubbles, one assumes there is no tomorrow where conditions will most probably be different.

In the real estate market buyers were always assuming the money lender and agent and seller were as honest as the day is long.

I wish the guvmint would go after Countrywide.

[usmc32yr]

09:00 PM on 06/16/2011

I have no sympathy for people who say they were "pressured" , they shouldn't be so weak ..

[TXfemmom]

03:37 PM on 06/16/2011

We had a credit card with Chase and it was compromised in 2009.  They aggressively marketed this product to me, and I took it on a "trial" basis for three months.  We were issued a new credit account number and sent a new card.  I had not even activated the card when it and the new number were compromised with another fraudulent charge.  Since no one had been given the new number and the account had not been activated by me, the compromise had to come via Chase.  It really ticked me off and I was very, very leery of even continuing to have an account and since their "trial" of the program hadn't even picked up on the fraud in the second situation, despite the fact that the card had not been activated and the fraudulent activity used the new number, I cancelled their "service".  It took three calls and a letter to them to get them to stop charging for the service.

[ivanhoemb]

03:08 PM on 06/16/2011

I don't know if the tactics were "high pressure" or what. But the auto industry is not the only place you see these solicitations for add-ons. Every time you buy an appliance or electronics, you are asked if you want the "extended warranty" or other types of insurance. There is big money to be made in this arena, and you should never agree to the add-on. They are rarely ever worth the money.

[Ron D]

02:55 PM on 06/16/2011

You all got to remember the constution THE us GOVERMENT IS NOT A GOVERMENT BUT IT IS A CORPORATION

[gcymru5491]

03:47 PM on 06/16/2011

The US is being governed by the Corp. Brotherhood.

[gcymru5491]

02:37 PM on 06/16/2011

The bank neither admitted nor denied.... Sounds like Bush Junior reviewing his FUBAR Iraq invasion.

[ivanhoemb]

03:11 PM on 06/16/2011

There is not much point to a settlement if the defendant admits liability. Furthermore, part of the consideration for the settlement agreement is the fact the Plaintiff gives up his right to recover at trial in exchange for the defendant being able to buy peace with money and not be required to admit any wrong doing. How you manage to interject politics into this is beyond reasonable comprehension.

[gcymru5491]

03:47 PM on 06/16/2011

"Beyond reasonable comprehension" = our invasion of Iraq. Thank you. I just couldn't find the right phrasing to reflect my feelings about that matter. BTW, RAYGUN invited the Corp. Brotherhood to use the Oval Office loo, and the Bushes supplied warm towels in the lav.

[Robert J Cook]

02:35 PM on 06/16/2011

I can't believe the Republicans feel that the Banks are to heavily regulated. If the Republicans are successful in repealing Dodd-Frank, the last melt down will be nothing compared to the one coming.Let you Congress people know Banks and Wall Street need more regulation not less.

[ivanhoemb]

03:14 PM on 06/16/2011

There has to be a reasonable middle ground. Dodd-Frank is stifling growth, and is in part responsible for the sluggish economy. Fair regulation is indeed desirable, but current regulation has gone too far.

[Robert J Cook]

09:42 AM on 06/18/2011

Given the current atmosphere, I fear we need more regulations,especially with the way the Republicans are scurrying to gather as much wealth as they can before 2012. President Obama has succeeded in giving the Republicans enough rope to hang themselves, and when the primaries are over and whoever the Republican candidate is, you will see a wave unleashed against the Republlican, unseem before. Our President isn't one who shows his cards before all of them have been dealt. Bin Laden being a prime example. The more Bachman,Boehner and McConnell,Newt,Mitt and any other Republican throw stones, the more ammunition they are letting the President collect. The President and his wife stand for the middle class, always have, always will. He will bring back the power of the middle. When the lesson of respect for the middle class is learned by Wall Street, the Banks and Business than maybe regulation can be loosened.