LOS ANGELES (Legal Newsline) – Attorney General Kamala D. Harris recently announced a stipulated judgment that resolved allegations that JPMorgan Chase (Chase) committed credit card debt collection violations.
According to the allegations, Chase committed credit card debt collection abuses against thousands of Californians. Specifically, the settlement addresses debt collection wrongdoing. Examples allegedly include collecting incorrect amounts, selling bad credit card debt and running a debt collection mill.
Chase will pay $50 million in restitution to consumers nationwide, with about $10 million of that going to California consumers.
“Abusive and illegal debt collection practices will not be tolerated in California,” Harris said. “This settlement provides real relief to tens of thousands of Californians, including service members, and prevents JPMorgan Chase from continuing these deceptive and illegal debt collection practices.”
Chase filed more than 125,000 credit card collection lawsuits against California consumers between 2009 and 2013. The company allegedly relied on illegally robo-signed sworn documents.
The attorney general initially filed the litigation against Chase on May 9, 2013. The stipulated judgment resolves that filing. Separately, Chase will pay additional penalties and fines to the Office of the Comptroller of the Currency, the Consumer Financial Protection Bureau and other states in similar actions.