JPMorgan Chase Fined $4.6 Million for Failures Related to Checking Account Screening Information
- Category: Hall of Shame
The Consumer Financial Protection Bureau (CFPB) today took action against JPMorgan Chase Bank, N.A. for failures related to information it provides for checking account screening reports. Banks screen potential customers based on reports about prior checking account behavior created by consumer reporting companies. Banks that supply information for those reports are legally required to have proper processes in place for reporting accurate information. Chase did not have these processes in place and kept consumers in the dark about the results of their reporting disputes and key aspects of their checking account application denials.
"Information about checking account behavior is used to determine who can open a bank account," said CFPB Director Richard Cordray. "Because Chase did not have the required processes to report this information accurately, and kept consumers in the dark about reporting disputes and application denials, the Consumer Bureau is imposing a $4.6 million penalty and other measures to stop these violations in the future."
- Failed to have adequate processes for accurately reporting checking account information
- Kept consumers in the dark about the results of their disputes
- Kept consumers in the dark about key aspects of their checking account application denials
Chase is required to:
- Ensure accurate information is reported
- Inform consumers of investigation outcomes
- Provide consumers with contact information
- Pay a $4.6 civil money penalty