JPM to Shutter Litigation Group for Consumer Debt Collection

October 18, 2013
American Banker 
debt settlement news

JPMorgan Chase plans to shut down its collection-litigation services division, which sues consumers to recover delinquent debts, two years after deciding to no longer file collections suits. It ended the activity in 2011 after facing questions about the accuracy of records tied to accounts sold to third-party collections firms.

The Office of the Comptroller of the Currency (OCC) last month issued a consent order requiring JPMorgan to reform its collections department and establish new internal controls for pursuing delinquent accounts via lawsuits and debt sales. The shutdown of the collection-litigation services group raises questions about whether the bank is preparing for legal challenges in the wake of the OCC settlement.










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