California Reaches $100M Settlement with JP Morgan Chase Regarding Debt Collection Practices

JP Morgan Chase, the nation’s biggest bank, will pay $100 million to settle allegations that it used illegal and abusive debt-collection practices in connection with California credit card customers.

The deal follows from a 2013 lawsuit brought against JPMorgan Chase by California Atty. Gen. Kamala Harris and parallels a national settlement over similar allegations. insideARM first reported on the California lawsuit on May 10, 2013, and wrote about the earlier national settlement on July 8, 2015.

The settlement resolves allegations that JPMorgan Chase (Chase) committed credit card debt-collection abuses against tens of thousands of Californians. The settlement specifically addresses debt collection wrongdoing that includes collecting incorrect amounts, selling bad credit card debt, and running a debt collection mill that involved illegally “robo-signing” thousands of court documents and improperly obtaining default judgments against military service members.

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