Massachusetts Probes J.P. Morgan's Debt-Collection Practices

September 21, 2013
Wall Street Journal 
debt settlement news

The Massachusetts attorney general's office is scrutinizing JPMorgan Chase's debt-collection practices in one of several probes into how the bank collects payments from delinquent borrowers. The investigation is separate from one being conducted by a group of 13 states, led by Iowa AG Tom Miller. Meanwhile, on Sept. 19, the Office of the Comptroller of the Currency announced a settlement with JPMorgan over an investigation of its use of inaccurate documentation in lawsuits filed against borrowers to collect past-due debt. The bank said last week that it stopped filing credit-card collection lawsuits in 2011 and has not resumed such activity.

In May, California filed a lawsuit, still pending, that accused JPMorgan of "fraudulent" and "unlawful" methods when pursuing old debts from 100,000 borrowers in the state. The Consumer Financial Protection Bureau also has launched an investigation of JPMorgan's collection and sale of credit-card debt, including its use of sworn legal documents, but has not reached a settlement with the bank. Earlier this year, the agency said it would investigate alleged abuses in the debt-collection industry.

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