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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsActual Accountability: CFPB Fines JP Morgan Chase for Fraud
Great news from the Consumer Financial Protection Board today. JP Morgan Chase, a major credit card issuer, has been hit with a $309 million fine for defrauding customers. More than 2 million customers will get refunds for unfair fees imposed by JP Morgan Chase.
In addition, JP Morgan Chase will be required to audit its own procedures and present evidence to the CFPB that it has stopped the practices that led to the finespecifically, billing customers for services they werent being provided.
This is precisely why the CFPB exists. JP Morgan Chase was breaking the law and getting away with it. The amount of money being taken through these fees was small enough to not be worth suing over individually, but in the aggregate, it represented a big transfer of moneyillegally!from customers to their credit card company. There was a time when, even if they noticed it happening, customers wouldnt have been able to do anything about it.
That time is over.
The important thing here is that the incentives are changed for banks and financial institutions. Where once they could steal from customers with impunity and pocket all of the money, now theres actual enforcement of the laws protecting consumers, with a real cost both in penalties and in the work they have to do to ensure future compliance. That new reality will put a check on future misconduct by banks.
This isnt the first action the CFPB has taken against a credit card company and it wont be the last.
The fact that the CFPB worksthat it changes the balance of power between banks and their customersis exactly the reason that Senate Republicans tried to destroy it by blocking the appointment of a director for the agency.
Fortunately, the Senate GOP broke, and Richard Cordray was able to win approval to head this incredibly important agency. 2.1 million JP Morgan Chase customers can breathe a sigh of relief over that.
http://blog.workingamerica.org/2013/09/19/actual-accountability-cfpb-fines-jp-morgan-chase-for-fraud/?utm_source=buffer&utm_campaign=Buffer&utm_content=bufferdc416&utm_medium=twitter
gopiscrap
(23,763 posts)abelenkpe
(9,933 posts)gopiscrap
(23,763 posts)I have been saying that for a long time but just get called a communist when I bring it up.
msongs
(67,438 posts)our attorney general believes if you are acting on behalf of a huge corporation you should not be put in jail
hatrack
(59,592 posts)Then it's not "actual accountability", is it now?