JPMorgan Chase ordered to pay $50M in consumer refunds

Probably one of the worst banks around.

The tactics it used to go after delinquent credit card borrowers have landed JPMorgan Chase in hot water with federal regulators.

The Consumer Financial Protection Bureau said Chase’s tactics were illegal.

The agency, in partnership with attorneys general in 47 states and the District of Columbia, ordered Chase to permanently halt collection attempts on more than 528,000 consumer accounts. Chase must also pay $136 million in penalties and payments to the CFPB ($30 million) and states ($106 million) and $50 million in consumer refunds. Chase will pay a separate $30 million penalty to the Office of the Comptroller of the Currency in a related action.

“Chase sold bad credit card debt and robosigned documents in violation of law,” said CFPB director Richard Cordray in a statement. “Today we are ordering Chase to permanently halt collections on more than 528,000 accounts and overhaul its debt-sales practices. We will continue to be vigilant in taking action against deceptive debt sales and collections practices that exploit consumers.”

Chase allegedly sold “zombie debts” to third-party debt buyers, which included consumer accounts that were inaccurate, already settled, not owed, discharged in bankruptcy or in some way not collectible.


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http://www.msn.com/en-us/money/companies/jpmorgan-chase-ordered-to-pay-dollar50m-in-consumer-refunds/ar-AAcMqhL