Elizabeth Warren’s Consumer Watchdog Forces JPMorgan to Pay $329 Million

<a href="http://www.flickr.com/photos/mdfriendofhillary/7006244903/">mdfriendofhillary</a>/Flickr

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During last year’s Massachusetts Senate race, the banking giant JPMorgan Chase heaped more than $80,000 on Sen. Elizabeth Warren’s opponent Scott Brown. And for good reason. The consumer watch dog agency that she conceived of and helped get running announced Thursday that it has ordered JPMorgan Chase to pay $309 million to more than 2.1 million Americans it scammed, plus a penalty of $20 million.

The Consumer Financial Protection Bureau (CFPB) found that between 2005 and 2012, Chase charged customers monthly fees ranging from $8 to $12 for services they didn’t ask for and didn’t receive. The bank collected money from customers for credit card products such as “identity theft protection” and “fraud monitoring,” even when the consumer hadn’t given consent.

The refund the CFPB ordered the bank to issue includes the total fraudulent fees charged, plus interest, and amounts to about $147 a person.

“At the core of our mission is a duty to identify and root out unfair, deceptive, and abusive practices in financial markets that harm consumers,” CFPB director Richard Cordray said Thursday.

The bureau is also forcing the bank to send out the refund checks in a simple, convenient way, so that consumers don’t have to take any additional action to get their money, and to submit to an independent audit of the refund process.

Thursday was not a good day for for JPMorgan. In a rare admission of fault, the bank was also fined some $920 million for a bad trade out of its London office last year that resulted in a $6.2 billion loss.

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SIX TRUTHS

Reclaiming power from those who abuse it often starts with telling the truth. And in "This Is How Authoritarians Get Defeated," MoJo's Monika Bauerlein unpacks six truths to remember during the homestretch of an election where democracy, truth, and decency are on the line.

Truth #1: The chaos is the point.

Truth #2: Team Reality is bigger than it seems.

Truth #3: Facebook owns this.

Truth #4: When we go to work, we're in the fight.

Truth #5: It's about minority rule.

Truth #6: The only thing that can save us is…us.

Please take a moment to see how all these truths add up, because what happens in the weeks and months ahead will reverberate for at least a generation and we better be prepared.

And if you think journalism like Mother Jones'—that calls it like it is, that will never acquiesce to power, that looks where others don't—can help guide us through this historic, high-stakes moment, and you're able to right now, please help us reach our $350,000 goal by October 31 with a donation today. It's all hands on deck for democracy.

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