The Consumer Financial Protection Bureau ordered Wilmington-based credit card operations of Chase to refund an estimated $309 million to more than 2.1 million customers.
This action is the result of work started by the Office of the Comptroller of the Currency (OCC), which the consumer bureau joined last year, according to bureau. The agencies found that Chase engaged in billing practices for certain credit card “add-on products” by charging consumers for credit monitoring services that they did not receive.
According to the CFPB order, Chase enrolled consumers in credit card “add-on” products that promised to monitor customer credit and alert consumers to potentially fraudulent activity. In order for consumers to obtain credit monitoring services, consumers generally must provide written authorization. Chase, however, charged many consumers for these products without or before having written authorization Chase charged customers as soon as they enrolled in these products even if they were not actually receiving the services yet.
The agencies found that Chase engaged in these practices between October 2005, when Chase first offered the products, and June 2012.
The charges sometimes boosted fees when the added charges exceeded account limits and interest charges were calculated.
