Credit Card News
Advertising Disclosure
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from many credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.
Credit Card Applications » News » Legal » Chase Cardholders Refunded for Credit Services

Chase Cardholders Refunded for Credit Services

Add to Favorites:
Chase Cardholders Refunded for Credit Services
September
23

Over two million Chase credit card account holders who were charged for credit monitoring services will soon be getting a check in the mail, if they haven’t already.

The Consumer Financial Protection Bureau (CFPB) has ordered Chase to pay $309 million in refunds for illegally charging cardholders for add-on products in the form of credit monitoring services. The bank was found guilty of illegal billing practices and must give full refunds to any consumer who was charged as a result of the violations.

More than 2.1 million Chase customers are affected by this ruling, all of whom were billed between October 2005 and June 2012. The Dodd-Frank Wall Street Reform and Consumer Protection Act says that financial institutions may not engage in unfair, deceptive or abusive practices and gives the CFPB power to take action against any company doing so.

Many refunds already given

Chase has already issued refunds to the majority of customers who were charged for the credit monitoring service. They stopped marketing the services in April 2011, but did not stop billing customers for the services until June 2012. Any customer who has been charged for an illegally marketed add-on product, or charged interest and/or fees because of the charge, is due a refund.

In addition to being signed up for services over the phone, instead of in writing as is required, some customers did not even receive the benefits of the credit monitoring service they thought they were signing up for. The service was supposed to provide monitoring of consumers’ credit report and alert them to any potentially fraudulent activity; instead customers were charged before any monitoring actually took place.

The list of violations of which Chase was found guilty includes charging customers for services they didn’t receive, charging interest and fees on top of the original unfair charges and failing to deliver the promised products. The add-on credit monitoring service fees were between $7.99 and $11.99 per month, and some customers were charged these fees for years without getting any benefits.

Chase customers who are due refunds need not do anything to file a claim or get the reimbursement. If they have not yet received a check, it should be on the way soon.

http://www.credit-land.com/images/disc-chase.png

Add to Favorites:

Related News:

CARD Act Saves Consumers Billions in Penalty Fees

By Elizabeth Nelson, Posted: October 17, 2013

Credit card holders could have been charged $2.5 billion more in overlimit fees if the Credit Card Accountability Responsibility and Disclosure Act (Credit CARD Act) had not been signed into law in 2009, according to the Consumer Financial ... Continue reading
Big Banks Throw Support Behind Financial Education Initiative

By Elizabeth Nelson, Posted: October 03, 2013

A newly launched financial education program has garnered millions of dollars in funding from Bank of America, Chase, GE Capital Retail Finance and Wells Fargo. Each of them has donated at least $1 million to become founding members of the ... Continue reading
Chase Gives $3 Million to Small Business Owners

By Elizabeth Nelson, Posted: January 28, 2014

Twelve small businesses have received quarter-million-dollar grants from Chase, as well as the chance to learn about marketing strategies in a special workshop at Google’s California headquarters. Continue reading
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
Get 0% Intro APR on Balance Transfers and Purchases for 21 months. After that, the APR will be 12.24%-22.24% based upon your creditworthiness.
For Excellent/Good Credit
1% cash back on select purchases, terms apply
For Fair Credit
Guaranteed $500 Unsecured Credit Limit
For Bad Credit