Chase Changes Policies Regarding Payday Lenders and Others Who Repeatedly Seek Payments from Customers

  Chase Changes Policies Regarding Payday Lenders and Others Who Repeatedly
  Seek Payments from Customers

Business Wire

NEW YORK -- March 20, 2013

JPMorgan Chase (NYSE: JPM) announced today that it is making policy changes
that will protect customers when payday lenders and other billers seek
inappropriate payments from Chase’s consumer deposit accounts. The company
will make the following changes.

         Chase will only charge one returned item fee to customers in cases
         where a biller presents items that are returned to them due to
         insufficient funds in the customer account more than once in a 30-day
  1.  period, even if the biller tries to collect multiple times. This
         change is intended to address payday lenders and others who present
         repeated payments to customers that are not in the spirit of their
         signed agreement with the customer. This change will become effective
         by the end of May.

         Chase is working to proactively identify potential misuse of the
         Automated Clearing House (ACH) system – including misuse on the part
    2.   of payday lenders or other companies – and report such practices to
         the National Automated Clearing House Association. Chase will work
         with NACHA to try to strengthen their own policies to disallow
         excessive presentments.

         We have an existing policy to always follow a customer’s instructions
    3.   to stop a payment. We plan to enhance communication and require
         additional training regarding that policy.

         Chase will make it easier for customers to close their accounts when
    4.   there are open pending charges, including payday lender payments. If
         we believe those pending charges are inappropriate, we won’t honor
         them.


“We took a look at our policies and decided to make a number of changes,” said
Ryan McInerney, CEO of Consumer Banking at Chase. “Some customers agree to
allow payday lenders or other billers to draw funds directly from their
accounts, but they may not know some of the aggressive practices that can
follow. Those practices include repeated attempts for payment that can result
in multiple returned items. We don’t believe these practices are appropriate,
and are making these changes to help protect customers from unfair and
aggressive collections practices.”

About Chase

Chase is the U.S. consumer and commercial banking business of JPMorgan Chase &
Co. (NYSE: JPM), a leading global financial services firm with assets of $2.4
trillion and operations in more than 60 countries. Chase serves more than 50
million consumers and small businesses through more than 5,600 bank branches,
18,700 ATMs, credit cards, mortgage offices, and online and mobile banking as
well as through relationships with auto dealerships. More information about
Chase is available at www.chase.com.

Contact:

JPMorgan Chase & Co.
Kristin Lemkau, 212-270-7454
kristin.lemkau@jpmorgan.com
www.jpmorganchase.com
 
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