“Those practices include repeated attempts for payment that can result in multiple returned items,” McInerney said. “We don’t believe these practices are appropriate, and are making these changes to help protect customers from unfair and aggressive collections practices.”
The changes include:
• Chase will only charge one returned item fee to customers in cases where a biller presents items that are returned to them due to insufficient funds in the customer account more than once in a 30-day period, even if the biller tries to collect multiple times. This change is intended to address payday lenders and others who present repeated payments to customers that are not in the spirit of their signed agreement with the customer. This change will become effective by the end of May.
• Chase said it is working to identify potential misuse of the Automated Clearing House (ACH) system – including misuse on the part of payday lenders or other companies – and report such practices to the National Automated Clearing House Association. Chase will work with NACHA to try to strengthen their own policies to disallow excessive presentments.
• The bank has an existing policy to always follow a customer’s instructions to stop a payment. “We plan to enhance communication and require additional training regarding that policy,” the bank said.
• Chase said it will make it easier for customers to close their accounts when there are open pending charges, including payday lender payments. “If we believe those pending charges are inappropriate, we won’t honor them,” the bank said.