JPMorgan Chase, Bank of America and Wells Fargo Allegedly Reap Billions of Dollars on Backs of Misled Customers As Lawsuits Hit Multiple Financial Giants

A rising variety of U.S. banks are accused of routinely deceptive prospects in an try and pocket billions of {dollars}.

JPMorgan Chase is now dealing with a proposed class motion lawsuit for allegedly transferring prospects’ unused money into accounts with extraordinarily low rates of interest with out correct disclosure.

The financial institution joins Wells Fargo, Financial institution of America and others accused of utilizing money sweep applications to quietly transfer unused funding cash into accounts with near-zero curiosity.

In his class motion lawsuit towards JPMorgan, Illinois resident Dan Bodea alleges that the financial institution hid its actions and did not adequately clarify how its money sweep program works to “generate substantial income for itself from the money of their prospects and a positive return on such money”. , whereas they solely pay their prospects a small a part of that return.”

Latest filings present the U.S. Securities and Change Fee is investigating Wells Fargo, Financial institution of America and Morgan Stanley over related allegations.

In the meantime, Wells Fargo, Charles Schwab, Morgan Stanley, Ameriprise, LPL Monetary, UBS and Financial institution of America’s Merrill Lynch subsidiary now face a number of authorized battles associated to the money sweep.

Most banks, together with JPMorgan, have declined to touch upon the matter.

LPL Monetary has denied the allegations and says it should “vigorously” defend itself in court docket.

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