Chase suspended its consumer credit card debt sales in 2013 and collections litigation in 2011.
It will have to pay a separate $30 million penalty to the Office of the Comptroller of Currency.
The CPFB was joined by 47 states and the District of Columbia in Wednesday’s action, the statement said.
Tennessee Attorney General Herbert H.
Credit card customers who think they have been victimized by debt collection practices can call the New Hampshire Attorney General’s Consumer Information line at 888-468-4454.
The states began investigating Chase in 2013, in coordination with the Consumer Financial Protection Bureau, which has announced its own Administrative Order with Chase.
“Chase sold bad credit-card debt and robo-signed documents in violation of law”, CFPB director Richard Cordray said in the agency’s statement.
The states alleged that Chase practiced robosigning in its own internal debt collection and when it sold debt to third-party buyers.
The affidavits included inaccurate information and calculation errors that resulted in judgments against consumers for more money than they actually owed and subjected some consumers to collections on accounts that were not theirs. Separately, the state will receive $750,000 because it was among the states that helped lead the Chase investigation, beginning in 2013, and the resulting settlement talks. “Chase’s shoddy practices disrupted the financial stability of almost 50,000 people in Illinois struggling with their credit-card debt in the wake of the economic crisis”.
Also, Chase, which could not immediately be reached to comment, allegedly engaged in inaccurate credit reporting, which had the potential to cause consumers future difficulty in obtaining housing, employment, credit and insurance, the statement said.
Among other reforms, the settlement requires new safeguards to help ensure debt information is accurate and inaccurate data is corrected, provides additional information to consumers who owe debts, and bars debt buyers who purchased debt from Chase from reselling consumer debt to other purchasers. State officials said Chase had issued 30 checks, totaling $26,000, in restitution payments to Hawaii consumers.
Stopped filing credit card collections litigation in 2Q 2011 and have not restarted.
Chase to Refund Overpayments Plus 25%. Where Chase has obtained a judgement on a case pending during this timeframe, it will cease post-judgement enforcement, including any active wage garnishments or bank levies. Missouri’s share, based on the number of consumers affected, is $915,791. Remaining funds not used for durational positions will eventually be deposited in the General Fund.
“What makes this settlement so significant is that, first, it’s Chase Bank”, said James T. Boffetti, senior assistant attorney general and chief of the state’s Consumer Protection and Antitrust Bureau, alluding to the size of the bank and the precedent-setting scope of the agreement.
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