07/09/2015

JPMorgan Chase to Pay More Than $216M to Settle Credit-Card Debt Probes

The CFPB announced Wednesday that JPMorgan Chase violated the Dodd-Frank Wall Street Reform and Consumer Protection Act’s prohibitions against unfair, deceptive or abusive acts and practices. The megabank has been fined more than $216 million for selling bad credit card debt and illegally robo-signing court documents.

“Chase sold bad credit card debt and robo-signed documents in violation of the law,” CFPB Director Richard Cordray said in a statement released on Wednesday. “We are ordering Chase to permanently halt collections on more than 528,000 accounts and overhaul its debt-sales practices.”

The fines that JPMorgan Chase will face for this include at least $50 million in refunds, a $30 million civil penalty paid to the CFPB, a $30 million civil penalty paid to the OCC and $106 million in payments to the 47 states involved in the case. View Consent Order.

In 2013, the CFPB ordered JPMorgan Chase to refund $309 million to customers for illegal credit card practices.