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Chase Bank Plans to Close Accounts of Porn Performers

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Chase Bank has reportedly sent out letters to hundreds of porn performers that say their bank accounts will be closed down next month.

Gossip blogger Perez Hilton claims the letters state: "We recently reviewed your account and determined that it will be closing on May 11, 2014."

While the porn performers' profession is not mentioned in the Chase letter, The Frisky notes that Chase once refused to process payments for a company called Lovability because it sold condoms, which Chase said were "adult-oriented material" and a "reputational risk."

However, major drug store pharmacies also sell condoms, but Chase doesn't ban them.

After Lovability went public, Chase suddenly changed its mind and agreed to process payments, reported The Huffington Post.

Ex-porn producer Marc Greenberg sued Chase for refusing a loan based on "moral reasons," even though Greenberg had a yearly income of $500,000 and net worth of $10 million, noted Courthouse News.

RawStory.com reports that Chase is using a little-known FDIC memo that allows banks not to do business with a wide-range of third-party payment processors.

While Chase tries to claim "moral" ground against porn performers and producers, the bank itself paid a record $13 billion fine in 2013 because of "alleged bad behavior relating to mortgages and mortgage-backed bonds," noted Marketplace. "These were pumped into the financial markets before the housing bubble burst — both by J.P. Morgan Chase, and by Washington Mutual, the failing savings-and-loan that J.P. Morgan bought with government encouragement in the midst of the financial crisis."

Sources: Perez Hilton, The Frisky, The Huffington Post, Courthouse News, RawStory.com, Marketplace

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