JP Morgan Chase to pay for debt collection practices

The Office of the Comptroller of the Currency has announced a $30 million civil money penalty (CMP) has been assessed against JPMorgan Chase Bank, N.A., JPMorgan Bank and Trust Company, N.A. and Chase Bank USA, N.A. (Chase) for unsafe or unsound practices related to their non-home loan debt collection litigation practices and their Servicemembers Civil Relief Act (SCRA) compliance practices. The CMP follows a 2013 OCC enforcement action.

The Consumer Financial Protection Bureau (CFPB), along with 47 states and the District of Columbia, also took separate actions, which were reported on the Bureau Blog. The Bureau ordered Chase to refund at least $50 million to consumers (inclusive of amounts already refunded), stop collecting on 528,000 accounts, and include specific information when filing debt collection lawsuits in the future. Chase must also pay $136 million in penalties and payments to the CFPB and states.