Consumer board orders JPMorgan to pay $4.6 million

By Mark Iandolo | Aug 8, 2017

WASHINGTON (Legal Newsline) — The Consumer Financial Protection Bureau announced Aug. 2 that it has taken action against JPMorgan Chase Bank NA, ordering it to pay $4.6 million for alleged failures related to information it provides for checking account screening reports.

Banks screen potential consumers based on reports about prior checking account behavior; this information is provided by consumer reporting companies. Banks that supply such information must have proper controls in place to guarantee accurate information.

JPMorgan purportedly failed to have adequate processes in place to properly report checking account information, failed to notify consumers about the results of their disputes, and kept consumers in the dark about important details related to checking account application denials.

“Information about checking account behavior is used to determine who can open a bank account,” bureau director Richard Cordray said. “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.”

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