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Chase will pay $50 million to consumers for debt collection abuses Wrongdoing included obtaining de


LOS ANGELES – Attorney General Kamala D. Harris announced Monday a stipulated judgment resolving allegations that JPMorgan Chase (Chase) committed credit card debt-collection abuses against tens of thousands of Californians. The settlement specifically addresses debt collection wrongdoing. Chase was accused of 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. As part of the settlement, Chase will pay $50 million in restitution to consumers nationwide, including an estimated $10 million to California consumers, and significant restitution to service members in California, some of whom were on active duty when Chase obtained illegal default judgments against them. Chase will also pay $50 million in penalties and other payments to California, through the Office of the Attorney General. There will be changes to Chase’s credit card debt-collection practices to prevent similar misconduct in the future, and is subject to court approval. Between 2009 and 2013, Chase filed more than 125,000 credit card collection lawsuits against California consumers relying on illegally robo-signed sworn documents.


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