Sunday, July 19, 2015

Bankster To Pay Over $200 Million, Permanently Halt Squeeze On 500K+ Consumers' Accounts In Settlement Of Charges That It Peddled 'Zombie Debts' To Collection Scavengers & Robo-Signed Related Documents

The Office of the Consumer Financial Protection Bureau recently announced (via Public Citizen's Consumer Law & Policy Blog):
  • [T]he Consumer Financial Protection Bureau and Attorneys General in 47 states and the District of Columbia took action against JPMorgan Chase for selling bad credit card debt and illegally robo-signing court documents. The CFPB and states found that Chase sold “zombie debts” to third-party debt buyers, which include accounts that were inaccurate, settled, discharged in bankruptcy, not owed, or otherwise not collectible.

    The order requires Chase to document and confirm debts before selling them to debt buyers or filing collections lawsuits. Chase must also prohibit debt buyers from reselling debt and is barred from selling certain debts. Chase is ordered to permanently stop all attempts to collect, enforce in court, or sell more than 528,000 consumers’ accounts.

    Chase will pay at least $50 million in consumer refunds, $136 million in penalties and payments to the CFPB and states, and a $30 million penalty to the Office of the Comptroller of the Currency (OCC) in a related action.

    Chase sold bad credit card debt and robo-signed documents in violation of law,” said CFPB Director Richard Cordray. “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.”
For more, see CFPB, 47 States and D.C. Take Action Against JPMorgan Chase for Selling Bad Credit Card Debt and Robo-Signing Court Documents (Chase Ordered to Overhaul Debt Sales and Halt Collections on 528,000 Consumers’ Accounts).

For the consent order, see in re Chase Bank, USA N.A.

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