JPMorgan fined $136M for debt collection practices
JPMorgan fined US$136m for debt-collection practices
JPMorgan Chase will pay US$136 million to settle charges that it used illegal tactics to go after delinquent credit card borrowers.
The Consumer Financial Protection Bureau alleges the bank illegally relied on robo-signing signing mass quantities of documents and provided inaccurate information to third-party debt collectors when it sold the accounts.
Under the terms of the agreement announced yesterday, JPMorgan will refund US$50 million to affected consumers and pay US$136 million in fines to the Bureau, 47 states and the District of Columbia. The bank will permanently halt collecting on 528,000 accounts.
It will have to pay a separate $30 million penalty to the Office of the Comptroller of Currency.