JPMorgan Chase & Co. (JPM), the biggest U.S. bank by assets, said it will face enforcement action from federal regulators over its collection practices and add-on products commonly appended to credit cards.
The company said in a May 8 regulatory filing that it “expects that its banking supervisors will in the future continue to take more formal enforcement actions against the firm,” instead of “issuing informal supervisory actions or criticisms.”
The U.S. Consumer Financial Protection Bureau is conducting an industrywide review of credit card add-on products, which can include debt cancellation and identity theft services. New York-based JPMorgan cited an identity theft product in its filing.
Banks including JPMorgan and Bank of America Corp. stopped offering such add-on products entirely in the face of regulatory scrutiny. The bureau’s first enforcement action was against Capital One Financial Corp. (COF), which paid about $210 million in restitution and penalties over the products.
Paul Hartwick, a JPMorgan spokesman, said the bank had no comment on the filing.
JPMorgan, the biggest U.S. bank by assets and deposits, is facing regulatory inquiries on its trading practices and conduct in the energy business. Shareholders are also considering at their May 21 meeting whether to separate the chairman and chief executive officer role, both currently held by Jamie Dimon.
To contact the reporter on this story: Carter Dougherty in Washington at email@example.com
To contact the editor responsible for this story: Maura Reynolds at firstname.lastname@example.org