JPMorgan Chase will pay $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. The bureau also said that Chase filed misleading lawsuits using inaccurate information to obtain debt collection judgments.
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Under the terms of the agreement announced Wednesday, JPMorgan will refund $50 million to affected consumers and pay $136 million in fines to the bureau, 47 states and 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.