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

Article by Christian Andrei, 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:

Comments

Login or Create new account to add a comment!

Recommended

BMW’s 550i xDrive has long been considered as one of the most successful business sedans in the world. For the brand, this may not be enough as it has officially...
by - January 20, 2017
Amazon is now moving beyond the four corners of online retailing. Only recently, the retail giant has been awarded a patent for its Road Network system. Since the patented technology...
by - January 20, 2017
The newest version of the Lamborghini Huracan is not a Superleggera, but a Performante. When Lamborghini filed for a patent for a new name, there were still debates whether this...
by - January 20, 2017
What is hotter and more menacing than a Hellcat? If we ask Dodge, its answer would be the “Demon.” Of course, we aren’t talking about a demon with horns and...
by - January 20, 2017
The 2018 model year could be an exciting year for fans and enthusiasts of the Chevrolet Corvette. This comes as the 2018 version of the Corvette is bound to feature...
by - January 19, 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