July 9, AtoZForex, Lagos – JPMorgan, ranked as the 5th largest bank in the world has been fined a total of $30 million. As part of JP Morgan, the Chase Bank USA, N.A. was also receiving a partial fine of the $30 million civil money penalty by the OCC. This levy is due to “unsafe or unsound practices related to the non-home loan debt collection litigation practices and to the Service members Civil Relief Act (SCRA) compliance practices.”
The unsound practices which have prompted this penalty involves deficiencies in the bank’s practices and procedures in relation to the preparation and notarisation of affidavits. Also, other sworn documents used in the bank’s debt collection litigation and deficiencies in its SCRA compliance program have also been found to be deficient.
As OCC fines JPMorgan Chase, in 2013 a similar enforcement action was taken against JPMorgan and a host of other banks. At the time, the OCC stated that: “The Office of the Comptroller of the Currency (OCC) today announced an enforcement action against JPMorgan Chase Bank, N.A., Columbus, Ohio, JPMorgan Bank and Trust Company, N.A., San Francisco, California, and Chase Bank USA, N.A., Wilmington, Delaware (collectively, the bank), for unsafe or unsound practices in connection with the bank’s non-home loan debt collection litigation practices and the bank’s non-home loan compliance with the Service members Civil Relief Act (SCRA).” The order required the bank to provide remediation to affected consumers and to correct deficiencies in the bank’s practices and procedures.
At the time, the OCC also stated that “the enforcement action requires the bank to provide remediation to affected consumers and to correct deficiencies in the bank’s practices and procedures related to the preparation and notarization of affidavits and other sworn documents used in the bank’s debt collection litigation and its SCRA compliance program.
The OCC’s action also directs the bank to improve its debt collection litigation policies, procedures and practices to ensure that affidavits and other sworn documents used in connection with non-home loan debt collection litigation are accurate, based on the personal knowledge of the bank employee signing the documents, or other applicable standard, and are notarized in accordance with all applicable legal requirements.”
With regards to the 2013 verdict, as of June 2015 consumers have received more than $50 million in settlement. Bank management continues to identify impacted consumers and service members as required under the OCC Consent Order, and will pay additional restitution to affected consumers as necessary.