{"id":371932,"date":"2021-11-02T19:34:56","date_gmt":"2021-11-02T19:34:56","guid":{"rendered":"https:\/\/publicintegrity.org\/?p=104622"},"modified":"2021-11-02T19:34:56","modified_gmt":"2021-11-02T19:34:56","slug":"subject-of-public-integrity-investigation-cited-over-prison-banking-practices","status":"publish","type":"post","link":"https:\/\/radiofree.asia\/2021\/11\/02\/subject-of-public-integrity-investigation-cited-over-prison-banking-practices\/","title":{"rendered":"Subject of Public Integrity investigation cited over prison banking practices"},"content":{"rendered":"\n

A private contractor has been ordered to pay restitution over predatory prison banking practices similar to those exposed in a Center for Public Integrity investigation<\/a>.<\/p>\n\n\n\n

The federal Consumer Financial Protection Bureau on Oct. 19 ordered JPay, a company that provides financial services to prisons and jails across the country, to pay a $2 million fine and $4 million in restitution<\/a> to formerly incarcerated people affected by the scheme.<\/p>\n\n\n\n

A 2014 Public Integrity investigation found that JPay was charging incarcerated people exorbitant fees to access their own money via debit cards they were forced to use.<\/p>\n\n\n\n

\u201cJPay\u2019s fee-bearing debit release card replaced cash or check options previously offered by state departments of correction,\u201d according to CFPB\u2019s announcement of the fine. \u201cIn doing so, JPay charged fees to people being released from prison or jail who often have few resources outside of the balance of their prison or jail trust or commissary accounts. In addition, JPay provided consumers with inaccurate or incomplete information about the fees it assessed.\u201d<\/p>\n\n\n\n

\u201cJPay siphoned off taxpayer supported benefits intended to help people transitioning out of the corrections system,\u201d CFPB Director Rohit Chopra said in a press release. \u201cJPay exploited its captive customer base to charge unfair fees that harmed the newly released and their families.\u201d<\/p>\n\n\n\n

Under the terms of a consent decree with CFPB, JPay will be prohibited from charging the formerly incarcerated fees to access their own money.<\/p>\n\n\n\n

Public Integrity\u2019s 2014 investigation into JPay<\/a> found that the company was charging families of incarcerated people fees of as much as 35% to 45% to send them money.<\/p>\n\n\n\n

JPay released a statement on Tuesday when contacted by Public Integrity, saying it “is pleased to have reached a settlement with the CFPB that corrects past practices related to electronic funds transfers and provides redress to impacted individuals.” JPay and its parent company, Aventiv Technologies, “cooperated fully with the CFPB,” it said, in keeping with a new strategy of “working collaboratively with regulators, reforming certain past business practices, and making products and services more affordable and accessible.” <\/p>\n\n\n\n

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The post Subject of Public Integrity investigation cited over prison banking practices<\/a> appeared first on Center for Public Integrity<\/a>.<\/p>\n\n

This post was originally published on Center for Public Integrity<\/a>. <\/p>","protected":false},"excerpt":{"rendered":"

A private contractor has been ordered to pay restitution over predatory prison banking practices similar to those exposed in a Center for Public Integrity investigation. The federal Consumer Financial Protection Bureau on Oct. 19 ordered JPay, a company that provides financial services to prisons and jails across the country, to pay a $2 million fine [\u2026]<\/p>\n

The post Subject of Public Integrity investigation cited over prison banking practices<\/a> appeared first on Center for Public Integrity<\/a>.<\/p>\n","protected":false},"author":1372,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3503],"tags":[],"_links":{"self":[{"href":"https:\/\/radiofree.asia\/wp-json\/wp\/v2\/posts\/371932"}],"collection":[{"href":"https:\/\/radiofree.asia\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/radiofree.asia\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/radiofree.asia\/wp-json\/wp\/v2\/users\/1372"}],"replies":[{"embeddable":true,"href":"https:\/\/radiofree.asia\/wp-json\/wp\/v2\/comments?post=371932"}],"version-history":[{"count":2,"href":"https:\/\/radiofree.asia\/wp-json\/wp\/v2\/posts\/371932\/revisions"}],"predecessor-version":[{"id":372145,"href":"https:\/\/radiofree.asia\/wp-json\/wp\/v2\/posts\/371932\/revisions\/372145"}],"wp:attachment":[{"href":"https:\/\/radiofree.asia\/wp-json\/wp\/v2\/media?parent=371932"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/radiofree.asia\/wp-json\/wp\/v2\/categories?post=371932"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/radiofree.asia\/wp-json\/wp\/v2\/tags?post=371932"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}