Questionable credit card collections and debt sales practices have JPMorgan Chase preparing to pay at least $125 million in a settlement with federal and state agencies.
“The tentative agreement with the U.S. Financial Protection Bureau, 47 states and the District of Columbia could be announced as soon as Wednesday, the Reuters report said, citing unidentified people familiar with the issue.
The states are expected to share roughly $95 million, while the CFPB will collect approximately $30 million, according to the report. The settlement is also expected to include about $50 million in consumer restitution.”
Debt collection practices are a frequent target of criticism, representing 25% of the CFPB’s 600,000 documented consumer complaints.
Overview by Alex Johnson, Sr. Analyst, Credit Advisory Service at Mercator Advisory Group
