NY to Get $11 Million from JPMorgan Debt-Collection Deal

JPMorgan Chase will pay $11.3 million to New York state as part of a multistate settlement over charges that it used illegal tactics to collect credit card debts.

Under the terms of the agreement announced Wednesday, JPMorgan will also refund $5.9 million to affected consumers in New York.

The joint federal-state settlement affects 47 states including New York as well as The District of Columbia.

The Consumer Financial Protection Bureau alleged 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 Chase filed misleading lawsuits using inaccurate information to obtain debt collection judgments.

JPMorgan will refund a total of $50 million to affected consumers and pay $136 million in fines.

Copyright AP - Associated Press
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