The CFPB, in association with Attorneys General in 47 states and the District of Columbia, ordered Chase Bank to pay $166 million, alleging “the bank used abusive tactics to collect debts.” The bureau alleged Chase engaged in robo-signing activities starting in 2009, and mandated that $50 million would go to refund the bank’s customers.
- “Chase Bank USA and Chase Bankcard Services Inc.” are subsidiaries of JPMorgan Chase & Co. The allegations were “brought by the Consumer Bureau, 47 states, including Tennessee and the District of Columbia.” [“Chase to pay $166M over collection tactics,” Knoxville News-Sentinel, 07/09/15]
- According to the CFPB, the company “pursued the wrong borrowers, sought incorrect amounts or so-called zombie debt that was too old, or relied on documents with improper signatures.” Chase Bank “allegedly sold uncollectable accounts to third-party debt buyers and got judgments without following proper procedures, a practice known as robo-signing. From 2009 through 2013, the bank recovered about $4.5 billion from defaulted accounts through collection lawsuits and from selling defaulted accounts to debt buyers.” [“Chase to pay $166M over collection tactics,” Knoxville News-Sentinel, 07/09/15]
Inactive or Resolved