Regulation

OCC takes enforcement action against Chase’s business practices

occ-seal-slideThe OCC took enforcement action against Chase Bank last week for alleged unsafe and unscrupulous practices related to the bank’s debt collection litigation practices and non-compliance with the Servicemembers Civil Relief Act.

Under the agreement with the OCC, Chase is required to provide remediation to affected customers and correct flaws in the bank’s processes and procedures related to sworn documents used in debt collection litigation and the SCRA compliance program, LoanSafe.org reports.

The bank is also required to improve its debt collection litigation policies, ensuring that documents are accurate and are notarized in accordance with all legal requirements. The OCC also directed the bank to improve the processes used to determine whether servicemembers are eligible for SCRA benefits.

Additionally, the bank is required to review all non-home lending debt collection litigation from January 2009 to the present, as well as all non-home lending SCRA accounts from January 2005 to the present, according to LoanSafe.org.

“We have taken extensive steps over the past two years to remediate the issues that affected customers and redesign our practices,” Bill Wallace, the head of operations for consumer and community banking at Chase, said. “Although these issues affected less than one percent of Chase customers, any mistake is regrettable and does not reflect the high standards we set for ourselves and our commitment to providing all customers an outstanding experience. We are committed to fixing this and getting it right.”

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