JPMorgan Chase Bank has agreed to pay $4.6m in fine to the Consumer Financial Protection Bureau (CFPB) to settle allegations of failures in its checking account screening reports.
The regulator alleged that the bank did not have proper processes in place for reporting accurate information on consumers’ checking account behaviour.
The bank was also accused of failing to inform consumers about the results of their reporting disputes and key aspects of checking account application denials.
CFPB in ist probe found that Chase failed to provide thousands of its customers the results of investigations into their disputes between July 2010 and December 2014.
The bank also sent denial notices to around 17,500 customers between October 2014 and February 2015, but did not give any information of the reporting company based on which the denial was made.
CFPB director Richard Cordray said: “Information about checking account behavior is used to determine who can open a bank account. 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.”