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JPMorgan fined $136M for debt collection practices

Published:Wednesday | July 8, 2015 | 1:53 PM

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.

- AP