Florida residents may be interested to know that JPMorgan Chase & Co was recently ordered to fix credit card procedures including debt collection. They were also told by U.S. bank regulators to pay back over $300 million to customers who were harmed by the bank’s practices in collections. Separate orders sanctioned the bank for errors in pursuing credit card debts in court, and for charging people fees for credit-monitoring services without delivering them. The orders against JPMorgan include $80 million in penalties.
The Office of the Comptroller of the Currency and the Consumer Financial Protection Bureau ordered the bank to refund over $300 million to cardholders as a result of charging them for credit-monitoring services that were never ordered or received. The bank is also required to review all debt-collection litigation dating back to January 2009, potentially affecting hundreds of thousands of borrowers. Earlier this year, the bank was accused in a lawsuit brought by California’s attorney general of filing faulty documents in an attempt to collect on credit card debt. Officials in several other states are also investigating the bank’s credit card practices.
According to JP Morgan, it discontinued filing collection lawsuits two years ago. The bank also stated that the debt collection issues affect less than one percent of its customers. It did apologize for the mistakes, saying that they were regrettable.
When companies use dishonest or harassing tactics in an attempt to collect debts, they are breaking the law. A Florida attorney with experience in bankruptcy matters may be able to help those who are dealing with creditor harassment by devising a plan to stop creditor abuse.
Source: Reuters, “JPMorgan told to fix credit card practices, pay refunds“, Aruna Viswanatha, September 19, 2013