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Chase may face $80M fine

By Janna Herron ·
Thursday, September 12, 2013
Posted: 6 pm ET

Chase is close to agreeing to a settlement of less than $80 million with the federal government over its debt collection practices and identity theft protection products, according to a news report.

The Office of the Comptroller of the Currency and the Consumer Financial Protection Bureau are getting set to fine the bank as early as next week, according to unnamed sources in a Bloomberg report on Thursday.

The company's CEO, Jamie Dimon, met this week with the OCC to provide updates on Chase's activities and compliance with federal orders, the report said. The bank may also face penalties related to a record trading loss in London last year.

Chase and the CFPB both declined to comment on the report.

Early last year, the OCC started investigating more than 20,000 Chase accounts that may have had falsely inflated balances on delinquent accounts and lacked adequate documents for judgments on cases that went to collections, according to an American Banker report then.

The CFPB, meanwhile, has scrutinized add-on products that credit companies sell. These include payment protection, credit score tracing, wallet protection and identity theft protection. Last year, the watchdog agency ordered Discover and Capital One to pay hundreds of millions of dollars in refunds and fines for deceptively selling these products.

The agency also forced American Express to pay back $112.5 million in refunds and penalties for various other illegal credit card practices.

Follow me on Twitter: @JannaHerron.

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