tl;dr
JPMorgan Chase is facing criticism from US Democratic Senators Elizabeth Warren and Chris Van Hollen for considering imposing unprecedented fees on its 80 million-plus customers. The senators question the bank's potential fee hikes, suggesting that it should reduce stock buybacks and executive pay i...
JPMorgan Chase is facing intense backlash from Democratic Senators Elizabeth Warren and Chris Van Hollen for considering imposing unprecedented fees on its 80 million-plus customers. The senators question the bank's potential fee hikes, suggesting that it should reduce stock buybacks and executive pay instead.
Despite earning $1.1 billion in overdraft fees last year, JPMorgan Chase cites proposed federal regulations as the reason for considering new fees, including charges for basic checking accounts, credit score trackers, and financial planning tools. The bank's stance has sparked outrage amidst its record profits and executive compensation.
In a letter to the banking giant, the Democratic Senators blast the bank’s flirtations with fee hikes, including charges for basic checking accounts and services. They question whether JPMorgan Chase will reduce its stock buybacks and executive pay instead of imposing new fees on its customers.
Data from the Consumer Financial Protection Bureau (CFPB) reveals that JPMorgan earned $1.1 billion in overdraft fees last year, making it the leader among all US banks in this regard. Despite its historic profits, the bank says proposed federal regulations that would cap credit and debit card late fees and force banks to hold higher capital reserves would trigger a need to impose new fees. In addition to charging for basic checking accounts, Chase indicates that items like credit score trackers and financial planning tools will likely also see fees attached to them if the new regulations are approved.