July 31, 2014 6:03 AM ET

Banks

Company Overview of Chase Bank USA, National Association

Company Overview

Chase Bank USA, National Association provides financial services, which includes consumer and commercial banking. The bank serves consumers and small businesses through bank branches, ATMs, mortgage offices, and online and mobile banking as well as through relationships with auto dealerships and schools and universities. The bank also issues credit cards. The bank was formerly known as Chase Manhattan Bank USA, National Association and changed its name to Chase Bank USA, National Association in March, 2005. The bank was founded in 1982 and is headquartered in Newark, Delaware. Chase Bank USA, National Association operates as a subsidiary of CMC Holding Delaware Inc.

Route 273

White Clay Center Building 200

Newark, DE 19711

United States

Founded in 1982

Phone:

302-634-1000

Key Executives for Chase Bank USA, National Association

President and Director
Chief Financial Officer and Director
Senior Vice President
Vice President and Controller
Vice President
Compensation as of Fiscal Year 2014.

Chase Bank USA, National Association Key Developments

The Office of the Comptroller of the Currency Announces $350 Million Civil Money Penalty Against JPMorgan Chase, N.A., JPMorgan Bank and Trust Company, N.A., and Chase Bank USA, N.A for Bank Secrecy Act Violations

The Office of the Comptroller of the Currency (OCC) announced a $350 million civil money penalty against JPMorgan Chase, N.A.; JPMorgan Bank and Trust Company, N.A.; and Chase Bank USA, N.A., for Bank Secrecy Act (BSA) violations. The penalty follows a January 2013 cease and desist order in which the OCC directed the three affiliated banks to correct deficiencies in their compliance programs. The OCC found critical and widespread deficiencies in the banks’ BSA and anti-money laundering (AML) compliance programs with respect to suspicious activity reporting, monitoring of transactions for suspicious activity, the conduct of customer due diligence and risk assessments, and internal controls and independent testing. The penalty is based in part on JPMorgan Chase’s failure to report suspicions about Bernard L. Madoff Investment Securities, LLC, to U.S. law enforcement and regulators, despite having alerted United Kingdom authorities in the months prior to Mr. Madoff’s arrest. The banks also failed to detect and report other cases of suspicious activity. Since issuing the January 2013 cease and desist order, the OCC continues to monitor progress that JPMorgan Chase has made to correct weaknesses identified by the agency as well as their ongoing work and commitment to remedy the remaining deficiencies. Concurrent with the OCC’s enforcement action, JPMorgan Chase entered into a deferred prosecution agreement with the U.S. Attorney's Office for the Southern District of New York and agreed to forfeit $1.7 billion to the United States. Also concurrent with the OCC’s enforcement action, the Financial Crimes Enforcement Network assessed a $461 million civil money penalty that is deemed satisfied by the forfeiture to the U.S. government.

Consumer Financial Protection Bureau Orders Chase Bank USA, N.A. and JPMorgan Chase Bank, N.A. to Pay $309 Million Refund for Illegal Credit Card Practices

The Consumer Financial Protection Bureau ordered Chase Bank USA, N.A. and JPMorgan Chase Bank, N.A. to refund an estimated $309 million to more than 2.1 million customers for illegal credit card practices. This enforcement action is the result of work started by the Office of the Comptroller of the Currency (OCC), which the CFPB joined last year. The agencies found that Chase engaged in unfair billing practices for certain credit card 'add-on products' by charging consumers for credit monitoring services that they did not receive. This order takes action against such practices and requires Chase to fully refund more than $300 million to consumers who were charged illegal fees. According to the CFPB order, Chase enrolled consumers in credit card 'add-on' products that promised to monitor customer credit and alert consumers to potentially fraudulent activity. In order for consumers to obtain credit monitoring services, consumers generally must provide written authorization. Chase, however, charged many consumers for these products without or before having the written authorization necessary to perform the monitoring services. Chase charged customers as soon as they enrolled in these products even if they were not actually receiving the services yet. The agencies found that Chase engaged in these practices between October 2005, when Chase first offered the products, and June 2012, when Chase stopped billing consumers who were not receiving the promised benefits. As a result of the unfair billing tactics, consumers: were charged for services they did not receive: consumers were charged fees as soon as they enrolled in these add-on products, which include 'identity theft protection' and 'fraud monitoring.' Monthly fees ranged from $7.99 to $11.99 even though the promised services were not performed. In some cases, consumers paid for these services for several years without receiving all of the promised benefits. Unfairly incurred charges for interest and fees: the unfair monthly fees that customers were charged sometimes resulted in customers exceeding their credit card account limits, which lead to additional fees for the customers. Some consumers also paid interest charges on the fees for services that were never received. Failed to receive product benefits: consumers were under the impression that their credit was being monitored for fraud and identity theft, when, in fact, these services were either not being performed at all, or were only partially performed. Enforcement action: pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act, the CFPB has the authority to take action against institutions engaging in unfair, deceptive, or abusive practices. Chase has taken steps to correct these unfair practices by ending the marketing of these services in April 2011 and issuing consumer refunds in October 2012. To ensure that Chase honors its obligation to repay all affected consumers and that consumers are no longer subject to these unfair billing practices, the CFPB's order requires that Chase Bank USA, N.A. and JPMorgan Chase Bank, N.A. End unfair billing practices: Consumers will no longer be billed for these products if they are not receiving the promised benefits. Chase also must take steps, subject to the Bureau's approval, to ensure these unlawful acts do not occur in the future. Complete repayment, plus interest, to more than two million consumers: Chase must pay a full refund, approximately $309 million, to more than two million consumers who enrolled in the credit monitoring product and were charged for services that were not received. In addition to the amount paid for the product, Chase must refund interest and any over-the-limit fees resulting from the charge for the product. Conveniently repay consumers: If the consumers are still Chase customers, they received a credit to their accounts. If they are no longer a Chase credit card holder, they received checks in the mail. Consumers were not required to take any action to receive their credit or check. Most consumers should have received refunds by November 30, 2012. Submit to an independent audit: Chase has engaged an independent auditor to help ensure the refunds have been provided in compliance with the terms as set forth in the CFPB's order. Improve oversight of third-party vendors: The CFPB is also requiring that Chase strengthen its management of third-party vendors who manage these identity protection products. Pay a $20 million penalty: Chase will make a $20 million penalty payment to the CFPB's Civil Penalty Fund. This action is the third that the Bureau has taken in coordination with a fellow regulator to address illegal practices with respect to credit card add-on products. This action is being taken in coordination with a separate action of the OCC, which initiated the inquiry in 2011. The OCC is separately ordering restitution of approximately $309 million from Chase Bank USA, N.A. and JPMorgan Chase Bank, N.A. The OCC's order also includes a separate order for Chase to pay $60 million in civil money penalties in addition to those ordered by the CFPB.

The Office of the Comptroller of the Currency Assesses $60 Million Penalty against JPMorgan Chase Bank, N.A. and Chase Bank USA, N.A. to Reimburse Consumers for Unfair Billing Practices

The Office of the Comptroller of the Currency assessed a $60 million penalty against JPMorgan Chase Bank, N.A., and Chase Bank USA, N.A., and ordered the bank to make restitution to millions of consumers who were unfairly billed for, and paid for, identity theft protection that they did not receive. The OCC found that the bank's billing practices violated Section 5 of the Federal Trade Commission (FTC) Act, 15 U.S.C. 45(a)(1), which prohibits unfair and deceptive acts or practices. The $60 million civil money penalty reflects a number of factors, including the scope and duration of the violations and financial harm to consumers from the unfair practices. The penalty will be paid to the U.S. Treasury. The restitution ordered by the OCC will benefit consumers who, between October 2005 and June 2012, enrolled in and paid for identity theft protection products but did not receive the full benefit of the products. The restitution will include the full amount paid for these products, plus any associated over-limit fees, and finance charges. The OCC believes that there are approximately 2.1 million harmed consumers, and fees and charges subject to restitution total approximately $309 million. The OCC order also requires the bank to take a number of corrective measures that include ensuring compliance with the FTC Act, improving governance of third-party vendors associated with certain consumer products, developing an enterprise-wide risk management program for such consumer products marketed or sold by the bank or its vendors, and improving its consumer compliance internal audit program. The OCC is coordinating its action with the Consumer Financial Protection Bureau (CFPB), which in a separate action is ordering the bank to pay a $20 million penalty and provide restitution to harmed consumers. Restitution payments made by the bank pursuant to the OCC's order will also satisfy identical obligations required by the CFPB action.

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