Credit/Debit Cards

Law firm investigating JPMorgan Chase for deceptive marketing of identity protection

240px-J_P_Morgan_Chase_Logo_2008_1.svgLaw firm Kirby McInerney said on Monday that it is investigating claims against JPMorgan Chase involving the alleged use of misleading tactics to sell its identity protection services to credit card customers.

The firm said the OCC and CFPB plan to bring enforcement actions and fines related to deceptive practices against the bank, which allegedly deceived credit card customers into purchasing Chase Identity Protection, saying the product was “free,” “mandatory” and that it would improve their credit scores.

Customers, however, were charged approximately $12 per month for the product. The firm said that while the bank marketed the product as its own, it is investigating whether the product was actually provided by a third-party partner, as well as the alleged deceptive practices.

The firm’s announcement came just before the bank announced it would pay $900 million to settle claims with regulators over its handling of trades by Bruno Iksil—an employee known as the London Whale—who was responsible for massive trading losses last year, Bloomberg reports.

JPMorgan will pay $300 million to the OCC and approximately $200 million each to the SEC, Federal Reserve and the U.K.’s Financial Conduct Authority. Iksil’s large bets for which he was named caused the bank to lose more than $6.2 billion last year.

Comments are closed.