JPMorgan Chase agreed to pay $27 million in auto lending settlement

Article by Christian A., on June 15, 2011

JPMorgan Chase & Co. has entered a deal valued at $27 million to resolve accusations filed in the U.S. that the auto lending unit of its bank sold products by using high-pressure sales strategies and false statements.

But in agreeing to this settlement, the bank isn’t admitting or denying any wrongdoing. In a statement, the Comptroller's office said that a $2 million fine will be paid to the bank by the Office of the Comptroller of the Currency.

A total of $25 million will be distributed to customers who were misled. During a period that started January 2008 and ended May 2009, JPMorgan Chase sold products that would permit a customer to cancel or suspend payments on their auto loan in the presence of certain triggers like being unemployed or death.

Borrowers will make monthly payments for these products. The OCC asserted that to sell these products, JPMorgan Chase's sales staff lied and gave misleading statements.

The bank gave them a script to work off on. The marketing of these products stopped in 2009. The OCC, which is a division under the U.S. Treasury, said that because of its investigation, JPMorgan Chase was prompted to review sales practices for home lending and credit card services.

JPMorgan then corrected more of its practices in this segment. JPMorgan released a statement to express its pleasure at having resolved the issue. It said that the affected customers have been reimbursed and it has amended its practices.

Topics: united states

If you liked the article, share on:

Pin It

Comments

Recommended

On July 11, Audi is set to reveal its flagship luxury sedan, the all new A8. And at this moment, none of us are sure how this model will look....
by - March 29, 2017
The recent Porsche 911 is definitely considered one of the most elite sports car to grace the roads worldwide. The task of producing its successor is challenging enough for the...
by - March 29, 2017
British startup Zenos, which entered bankruptcy administration earlier this year is now back in business. The Norfolk-based sports car manufacturer was bought by a consortium of investors headed by AC...
by - March 29, 2017
It’s quite safe to say that this generation marks the rise of the electric cars. For the past few years, automakers have been very busy trying to find the perfect...
by - March 28, 2017
Want to go for a sportier look, but don’t have enough cash to burn? Good news for future Ford Edge buyers, as the 2018 model year will have an optional...
by - March 28, 2017
Facebook

Youtube Channel

Tip Us
Do you have a tip for us?
Did you film an important event?
Contact us
Newsletter
Subscribe to our newsletter!
Subscribe
Galleries