JPMorgan Chase will pay $27 million to settle allegations of high-pressure sales tactics in its auto-lending unit, although the bank currently has not admitted to or denied any wrongdoing on their part, Reuters reported.
The bank said it has changed its sales practices from those that led it to court, which included false and misleading statements to customers regarding car loans. The bank’s sales personnel sold products from January 2008 through May 2009 that would cost borrowers a monthly fee for cancelling or suspending payments on their car loans if certain triggers were met, such as death and unemployment.
JPMorgan Chase will now pay a fine of $2 million to the Office of the Comptroller of the Currency (OCC), part of the U.S. Treasury, and will pay $25 million in to reimburse misled customers and fix problems in credit protection related to Chase car loans, according to Bloomberg.
The OCC’s lawsuit forced the bank to review sales practices for home lending and credit card services as well, where they found more issues that needed to be corrected.