JPMorgan to pay $166m over collection practices

JPMorgan will pay $166m and change credit-card collection practices after regulators found that the bank used abusive tactics to collect debts, the Consumer Financial Protection Bureau said on Wednesday.

Bloomberg News reports that the company agreed to resolve claims that its Chase Bank USA and Chase Bankcard Services units pursued the wrong borrowers, sought incorrect amounts or so-called zombie debt that was too old, or relied on documents with improper signatures, according to a CFPB statement.

Of the penalties, $136m settles claims brought by the Consumer Bureau, 47 states and the District of Columbia. The Office of the Comptroller of the Currency imposed a $30m penalty in a related action, CFPB said.

Chase sold bad credit-card debt and robo-signed documents in violation of law,” CFPB Director Richard Cordray said in the agency’s statement. “We will continue to be vigilant in taking action against deceptive debt sales and collections practices.”

The settlement is JPMorgan’s second in two years over its debt-collection practices. In September 2013, the OCC ordered the bank to refund more than $300m to customers. The company agreed to resolve the latest claims without admitting or denying wrongdoing.

To access the complete Bloomberg News article hit the link below:

JPMorgan to Pay $166 Million Over Debt-Collection Abuses

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