Chase To Pay $27M For Allegedly Shady Sales Tactics

Law360, New York (June 15, 2011, 12:38 PM EDT) -- JPMorgan Chase & Co. on Wednesday agreed to pay $27 million to settle allegations from the U.S. government that it pressured auto loan customers to purchase credit protection.

The Office of the Comptroller of the Currency alleged that between January 2008 and May 2009, employees of JPMorgan Chase Bank NA unit Chase Auto Finance used pressure tactics to get customers applying for auto loans to purchase debt cancellation contracts and debt suspension agreements, known inside the company as Chase Payment Assurance.

The debt cancellation agreements called...
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