<p> JP Morgan Chase & Co., the largest bank in the US, will pay $100 million to settle a lawsuit over using illegal methods to collect debts from more than 125,000 credit card holders in southern California and elsewhere.<br /><br /></p>.<p>The largest US bank by assets will pay an estimated $10 million to consumers in California as part of a previously announced $50 million national agreement, and will pay another $50 million in penalties to the state to settle the 2013 lawsuit, which was filed in a court in Los Angeles, Xinhua reported.<br /><br />"We are pleased to resolve these legacy issues with the California Attorney General and we are working to complete our remediation of affected card customers," Suzanne Alexander, a bank spokeswoman, said.<br /><br />The settlement specifically addresses debt collection wrongdoing that includes 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, state Attorney General Kamala Harris said.<br /><br />The settlement includes reimbursing military members in cases where the company improperly obtained default judgments.<br /><br />The judgment, which is subject to court approval, includes terms that fundamentally change Chase's credit card debt-collection practices to prevent similar misconduct in the future, Harris said.<br /><br />Between 2009 and 2013, Chase filed more than 125,000 credit card collection lawsuits against California consumers relying on illegally robo-signed sworn documents and provided an additional 30,000 robo-signed sworn statements in support of lawsuits filed against California consumers by third-party debt-collectors, according to court documents.<br /><br />Chase also made systematic calculation errors regarding the amounts owed, and sold "zombie debts" to third-party debt-collectors that included accounts that were inaccurate, settled, discharged in bankruptcy, not owed, or otherwise not collectable, Harris said.<br /><br /></p>
<p> JP Morgan Chase & Co., the largest bank in the US, will pay $100 million to settle a lawsuit over using illegal methods to collect debts from more than 125,000 credit card holders in southern California and elsewhere.<br /><br /></p>.<p>The largest US bank by assets will pay an estimated $10 million to consumers in California as part of a previously announced $50 million national agreement, and will pay another $50 million in penalties to the state to settle the 2013 lawsuit, which was filed in a court in Los Angeles, Xinhua reported.<br /><br />"We are pleased to resolve these legacy issues with the California Attorney General and we are working to complete our remediation of affected card customers," Suzanne Alexander, a bank spokeswoman, said.<br /><br />The settlement specifically addresses debt collection wrongdoing that includes 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, state Attorney General Kamala Harris said.<br /><br />The settlement includes reimbursing military members in cases where the company improperly obtained default judgments.<br /><br />The judgment, which is subject to court approval, includes terms that fundamentally change Chase's credit card debt-collection practices to prevent similar misconduct in the future, Harris said.<br /><br />Between 2009 and 2013, Chase filed more than 125,000 credit card collection lawsuits against California consumers relying on illegally robo-signed sworn documents and provided an additional 30,000 robo-signed sworn statements in support of lawsuits filed against California consumers by third-party debt-collectors, according to court documents.<br /><br />Chase also made systematic calculation errors regarding the amounts owed, and sold "zombie debts" to third-party debt-collectors that included accounts that were inaccurate, settled, discharged in bankruptcy, not owed, or otherwise not collectable, Harris said.<br /><br /></p>