After an investigation into practices around selling the Chase Payment Assurance plan, a credit insurance plan often bundled with low credit score car loans, the Office of the Comptroller of the Currency (OCC) has found that JPMorgan Chase intentionally made ”materially false, deceptive or otherwise misleading” statements in order to sell the coverage.
JPMorgan Chase will be reimbursing customers a total of $25 million dollars and will pay a $2 million fine. The company is not admitting to any liability or wrongdoing. The incidents were not the result of a few overzealous salesmen, because the company supplied a script and set of oral high pressure tactics to be used by its customer service reps. JPMorgan spokesman, Patrick Linehan, said in an e-mailed statement, ”We have reimbursed affected customers and have revised our sales scripts and marketing materials for our payment protection products.”
It is nice to see people getting their money back, but wouldn’t it make more sense to put a few of the responsible executives in jail? Let a couple of their peers do time for pushing these misleading tactics and the practice might just stop.