NEW YORK (5/15/13)--Federal regulators will take more enforcement action against JPMorgan Chase & Co. regarding its collection practices and add-on products typically attached to credit cards, said the largest U.S. bank by assets.
The Consumer Financial Protection Bureau is overseeing an industry-wide review of credit card add-on products--which often include identity-theft and debt-cancellation services (Bloomberg May 13).
In a May 8 regulatory filing, JPMorgan said it "expects that its banking supervisors will in the future continue to take more formal enforcement actions against the firm [rather than] issuing informal supervisory actions or criticisms."
The New York-based bank pointed to an identity-theft product in its filing, Bloomberg said.
In the face of regulatory scrutiny, banks such as JPMorgan and Bank of America have stopped offering certain add-on products, Bloomberg said.
The CFPB conducted its first enforcement action against Capital One Financial Corp., resulting in the company paying roughly $210 million in penalties and restitution for some of its products, Bloomberg said.