Text of Comptroller's Statement below. Click to read original on OCC's website here.
Statement of Thomas J. Curry
Comptroller of the Currency
On Civil Money Penalties Assessed Against
JPMorgan Chase Bank
July 8, 2015
took against JPMorgan Chase Bank N.A. and two of its affiliates in 2013. That action
focused on non-mortgage debt collection practices and Servicemember Civil Relief Act
compliance. At that time, we required corrective action to address the deficiencies plus
restitution for customers harmed by improper practices. To date, more than $50 million in
restitution has been paid by the bank to affected customers.
Compliance with the Servicemembers Civil Relief Act, or SCRA, is a matter of great
concern to me and to the OCC. The men and women who serve in the uniformed military
not only put themselves at risk, but they give up the comforts of home and family, and
they sacrifice financially. Congress took note of their financial sacrifice in passing the
SCRA, and we recognized it in changes we made to our examination procedures in 2013.
At that time, we mandated that SCRA compliance be evaluated as part of every exam at
every institution we supervise. Each of those examinations must include a review of the
process the bank uses to comply with rate reduction requests from individuals who go on
active duty, as well as an evaluation of the bank’s foreclosure practices with respect to
servicemembers. Although these steps are not required by law, we felt they were
necessary to ensure that the men and women who serve our country receive the legal
protections they are entitled to.
With respect to debt collection, it was dismaying to find that documents being used in
litigation were being rushed through in a process that has come to be known as “robosigning.”
Our action in 2013 was aimed at ensuring that affidavits and other sworn
documents are accurate, based on the knowledge of the person signing the document, and
Today, after having taken time to assess the full extent of the deficiencies, we are joining
with the CFPB and the states in assessing monetary penalties. These come on top of the
restitution required by our previous order, and they will help ensure that banks treat all
customers, including member of the armed services, fairly.
CONSENT ORDER FOR A CIVIL MONEY PENALTY
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through his national bank examiners and other staff of the Office of the Comptroller of the
Currency (“OCC”), has conducted an examination of 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 referred to as “Bank”). The OCC has identified
unsafe or unsound practices in connection with (i) the Bank’s sworn document and collections
litigation practices and (ii) the Bank’s efforts to comply with the Servicemembers Civil Relief
Act (“SCRA”). The OCC has informed the Bank of the findings resulting from the examination.
These unsafe or unsound practices were addressed by a Consent Cease and Desist Order issued
by the OCC against the Bank on September 18, 2013. The 2013 Consent Cease and Desist
Order, in part, required the Bank to undertake remedial and corrective actions, including
restitution, with respect to its sworn document, collections litigation, and SCRA compliance
The Bank, by and through its duly elected and acting Boards of Directors (collectively
referred to as “Board”), has executed a Stipulation and Consent to the Issuance of an Order for a
Civil Money Penalty, dated July 8, 2015, that is accepted by the Comptroller (“Stipulation”). By
this Stipulation, which is incorporated herein by reference, the Bank has consented to the
issuance of this Consent Order for a Civil Money Penalty (“Order”) by the Comptroller. The
Bank has begun corrective action, and is committed to taking all necessary and appropriate steps
to remedy the deficiencies and unsafe or unsound practices identified by the OCC, and to
enhance the Bank’s sworn document, collections litigation, and SCRA compliance practices.
The Comptroller finds, and the Bank neither admits nor denies, the following:
(1) For purposes of this Order, the following definitions shall apply:
(a) “Accounts” refers to accounts for an extension of credit in all lines of
business, except home lending, regardless of whether they are in
(b) “Collections Litigation” refers to attempts by the Bank (or a third party
acting on its behalf), through legal proceedings in the United States, to (i)
collect, or establish liability for, debts or liabilities in connection with
Accounts in all lines of business, except home lending, or (ii) establish the
Bank’s right, title, and interest in and to collateral and/or realize on and
liquidate collateral in connection with such Accounts.
(2) The Comptroller incorporates this paragraph from Article I of the September 18,
2013 Consent Cease and Desist Order. In connection with the Bank’s sworn document and
Collections Litigation processes, and the Bank’s efforts to comply with the SCRA, the Bank:
(a) Filed or caused to be filed in courts affidavits executed by its employees
or employees of third-party service providers making various assertions in
which the affiant represented that the assertions in the affidavit were made
based on personal knowledge or based on a review by the affiant of the
relevant books and records, when, in many cases, they were not based on
such personal knowledge or review of the relevant books and records;
(b) In some instances, filed or caused to be filed in courts inaccurate sworn
documents that resulted in obtaining judgments with financial errors in
favor of the Bank;
(c) Filed or caused to be filed in courts numerous affidavits that were not
properly notarized, including those not signed or affirmed in the presence
of a notary, where required;
(d) Failed to have in place effective policies and procedures across the Bank
to ensure compliance with the SCRA;
(e) Failed to devote sufficient financial, staffing and managerial resources to
ensure proper administration of its sworn document and Collections
(f) Failed to devote to its sworn document and Collections Litigation
processes adequate internal controls, policies, and procedures, compliance
risk management, internal audit, third party management, and training; and
(g) Failed to sufficiently oversee outside counsel and other third-party
providers handling sworn document and Collections Litigation services.
(3) The unsafe or unsound practices identified by the OCC were most prevalent in the
Bank’s consumer and community banking lines of business, including credit card services, auto
lending, and student lending.
(4) By reason of the conduct set forth above, the Bank recklessly engaged in unsafe
or unsound banking practices, which were part of a pattern of misconduct.
ORDER FOR A CIVIL MONEY PENALTY
Pursuant to the authority vested in him by the Federal Deposit Insurance Act, 12 U.S.C.
§ 1818(i), the Comptroller orders, and the Bank consents to the following:
(1) The Bank shall jointly and severally make payment of a civil money penalty in
the total amount of thirty million dollars ($30,000,000), which shall be paid upon the execution
of this Order:
(a) If a check is the selected method of payment, the check shall be made
payable to the Treasurer of the United States and shall be delivered to:
Comptroller of the Currency, P.O. Box 979012, St. Louis, Missouri
(b) If a wire transfer is the selected method of payment, it shall be sent in
accordance with instructions provided by the Comptroller.
(c) The docket number of this case (AA-EC-2014-64) shall be entered on the
payment document or wire confirmation and a photocopy of the payment
document or confirmation of the wire transfer shall be sent immediately,
by overnight delivery, to the Director of Enforcement and Compliance,
Office of the Comptroller of the Currency, 400 7th Street, S.W.,
Washington, D.C. 20219.
(2) This Order shall be enforceable to the same extent and in the same manner as an
effective and outstanding order that has been issued and has become final pursuant to 12 U.S.C.
§ 1818(h) and (i).
(1) This Order is intended to be, and shall be construed to be, a final order issued
pursuant to 12 U.S.C. § 1818(i)(2), and expressly does not form, and may not be construed to
form, a contract binding on the Comptroller or the United States.
(2) This Order constitutes a settlement of the civil money penalty proceeding against
the Bank contemplated by the Comptroller, based on the unsafe or unsound practices described
in the Comptroller’s Findings set forth in Article I of this Order. The Comptroller releases and
discharges the Bank and its subsidiaries from all potential liability for a civil money penalty that
has been or might have been asserted by the Comptroller based on the practices described in the
Comptroller’s Findings set forth in Article I of this Order, to the extent known to the Comptroller
as of the effective date of this Order. Provided, however, that (i) except as otherwise specified in
this paragraph, nothing in the Stipulation or this Order shall prevent the Comptroller from
instituting other enforcement actions against the Bank and its subsidiaries or any of its
institution-affiliated parties based on the findings set forth in this Order, or any other findings,
(ii) the practices described in Article I of this Order may be utilized by the Comptroller in other
future enforcement actions against the Bank or its institution-affiliated parties to establish a
pattern or the continuation of a pattern, and (iii) nothing in the Stipulation or this Order shall
preclude or affect any right of the Comptroller to determine and ensure compliance with the
terms and provisions of the Stipulation or this Order.
(3) The terms of this Order, including this paragraph, are not subject to amendment or
modification by any extraneous expression, prior agreements, or prior arrangements between the
parties, whether oral or written.
IT IS SO ORDERED, this 8th day of July 2015.
Maryann H. Kennedy
Large Bank Supervision
UNITED STATES OF AMERICA
DEPARTMENT OF THE TREASURY
COMPTROLLER OF THE CURRENCY
OCC PRESS RELEASE
ON REGULATORY ACTION AGAINST CHASE BANK
AND 30 MILLION DOLLAR FINE
FOR IMMEDIATE RELEASE
July 8, 2015
July 8, 2015
Contact: Robert M. Garsson
OCC Fines JPMorgan Chase $30 Million for Deficiencies in Debt Collection Practices and Servicemembers Civil Relief Act Compliance
WASHINGTON — The Office of the Comptroller of the Currency (OCC) today assessed a $30 million civil money penalty against JPMorgan Chase Bank, N.A.; JPMorgan Bank and Trust Company, N.A.; and Chase Bank USA, N.A. for unsafe or unsound practices related to the non-home loan debt collection litigation practices and to the Servicemembers Civil Relief Act (SCRA) compliance practices.
The unsafe or unsound practices involved 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 deficiencies in its SCRA compliance program.
The penalty, paid to the U.S. Treasury, follows the enforcement action issued by the OCC on September 18, 2013. That order required the bank to provide remediation to affected consumers and to correct deficiencies in the bank’s practices and procedures.
As of June 2015, consumers have received more than $50 million as a result of the OCC’s 2013 orders. Bank management continues to identify impacted consumers and servicemembers as required under the OCC Consent Order, and will pay additional restitution to affected consumers as necessary.
OCC national bank examiners continue to monitor the bank’s compliance with the order.
The Consumer Financial Protection Bureau (CFPB) along with 47 states and the District of Columbia, are taking separate actions, which were also announced today.