Tomahawk, WI 9/24/2013 (BasicsMedia) – Just when it seemed as if JPMorgan Chase & Co (NYSE:JPM) was on the verge of resolving its legal woes, it suddenly emerges that the company has yet one more class action against it coming up. What JPM is currently accused of is that it printed the Social Security numbers of its clients on the top of envelopes thus potentially compromising their security. This single act exposed JPM clients to cases of identity theft and now the government has deemed that this was both wrong and reckless on the part of JPM thus warranting this latest court case.

 JPM Compromises Customer Privacy

 The government decided that the safety of JPM’s customers has been compromised and this is not good. What seems to be happening is that the bank is emerging from one legal tribulation to the other and is quite worrying. This is a trend which is quite appalling and needs to be stopped. JPM already enjoys being the largest bank in the U.S with assets worth trillions of dollars. This latest round appears to suggest that the company is guilty of having broken both federal and state laws hence the reason why this class act is being brought against it.

 The earlier legal tribulations which affected JPM included the fact that it had possibly engaged in bribery in China. The company had also been charged with the London Whale scandal. The company has already lost close to $1 billion which it has paid to take care of civil regulatory probes which were being carried out against it. If this latest case was  to go on unimpeded, one wonders how much the company would be fined or penalized for this obvious breach of privacy information for possibly thousands of its clients. The costs could run to millions of dollars.

JPM Violates Own Rules

 What JPM did was interestingly a violation of its own rules and warnings to its clients. The bank keeps telling the customers that they risk encountering identity theft if they don’t take care to make sure that their addresses, name and the Social Security Number should never be written down and exposed publicly. The lawsuit has been filed by Alexander Furman, a resident of Illinois. He was mailed twice in succession by the bank and despite asking the bank not to include his Social Security number the first time, they still went ahead to make the same mistake.

The severity of the case facing JPM has to be looked at on the premise that Social Security numbers are often harder to replace compared to other important documents such as credit and debit cards. The Illinois resident on whose behalf the lawsuit has been filed, has sufficient grounds based on the fact that the state’s laws prohibit printing of people’s Social Security numbers on mailings. JPM will probably have to make an out of court settlement  although this may be quite problematic based in the serious allegations made against it.

 Investors are probably tired of all these lawsuits and are waiting for everything to end. As to when this will happen, it’s difficult to tell.

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