The United States Consumer Financial Protection Bureau (CFPB) has ordered JPMorgan Chase (JPM) to pay $4.6 million after the company failed to provide accurate screening reports.
The bank failed to provide accurate information to screening companies like Chex Systems and Early Warning Systems, which uses that information to determine whether or not someone can open a bank account, according to a CFPB statement. The CFPB also found that JPMorgan Chase’s have inadequate processes for accurate reporting and kept customers in the dark on reporting practices.
“Because Chase did not have the required processes to report this information accurately, and kept consumers in the dark about reporting disputes and application denials, the Consumer Bureau is imposing a $4.6 million penalty and other measures to stop these violations in the future,” said CFPB Director Richard Cordray.
The $4.6 million penalty will be paid to the CFPB’s civil penalty fund. JPMorgan will also be required to inform customers about the investigation results to anyone who filed a dispute and provide contact information.