New policies will be in place by the end of May to protect JPMorgan Chase customers who have borrowed money from online payday lenders, which automatically withdraw payments from borrowers' bank accounts. The withdrawals -- which occur even in states where payday lending has been outlawed -- often continue even after customers ask the bank to block access to payday lenders and can result in mounting penalties as a payday firm makes repeated efforts to debit the account. In response to criticism, JPMorgan will offer customers more authority to stop withdrawals and shutter their accounts; and it also will cap the fees it charges customers when the withdrawals trigger penalties for returned payments or insufficient funds. The changes are being implemented as federal and state regulators investigate the biggest U.S. banks for enabling online payday lenders to flout state statutes that ban the short-term loans, which carry interest rates that can top 500 percent. Bank of America and Wells Fargo are standing by their policies, for now, but the changes at JPMorgan are similar to provisions in a bill pending in Congress. The bank's new rules, however, will not stop payday lenders from doing business with residents in states where the product is prohibited; but the proposal from Sen. Jeff Merkeley (D-Ore.) would compel lenders to comply with laws in the state where the borrower lives, rather than where the lender is based.