Perfect recent example – Federal regulators’ had filed civil claims against the JPMorgan Chase bank – alleging that they basically lied and strong-armed auto loan customers into purchasing a plan that would suspend or cancel their loan payments if they lost their job – problem was – Chase didn’t do as promised when people did lose their job! Regulators have now reached a settlement with the JPMorgan Chase bank where the bank will pay a $2 million fine but without admission or denial of wrongdoing. This credit protection product was marketed by the bank in 2008-2009. Chase stopped selling this product in 2009 as well as a similar plan that it sold for home mortgage customers. These plans involved monthly fees (Chase had previously refunded customers $25 million). When you are applying for loans, be cautious of the “additional protection plans” – they often promise anything from death benefits to job loss protection, etc but are riddled with loopholes. Don’t be pressured into unnecessary (and often fraudulent) additional “coverage” plans.
Disclaimer: This blog is intended as general information purposes only, and is not a substitute for legal advice. Anyone with a legal problem should consult a lawyer immediately.