As a bankruptcy, debt collection defense, and consumer protection attorney in San Diego, I constantly hear complaints about banks. Excessive fees and penalties, deceptive tactics, hidden terms, and many other creative ways banks find to gouge consumers. Its been just over three years since Congress cracked down on the credit card industry and passed the CARD act, forbidding and restricting many of the banking industries most harmful practices. You might think that sent a strong message to the industry, and they would stop the deceitful and illegal practices, but you’d be wrong.
The Consumer Financial Protection Bureau, in conjunction with the Office of the Comptroller of the Currency, found that Chase Bank and JP Morgan Chase has been engaging in “illegal credit card practices” and charged more than $300 Million in illegal fees to over 2.1 Million customers. Specifically, they found that the banks had:
- Charged for services they did not provide, such as fraud monitoring and identity theft protection.
- Unfairly charged interest and fees. They even assessed interest and late penalties on the charges for services they didn’t provide
- Failed to provide promised services consumers were paying for
This is a big story and making headlines because of the amount of money and consumers involved, but banks take advantage of consumers every day. Make sure you know what you’re being charged and what services the bank should be providing you, or better yet, avoid the banks altogether.
You can read more about this story directly on the Consumer Financial Protection Bureau website: CFPB Orders Chase Bank to pay $309 Million for Illegal Credit Card Practices