Bank admits hounding people for credit card debt they did not owe

On behalf of Bankruptcy Law Firm of Clare Casas on Thursday, July 9, 2015.

Consumers in Florida will be among the holders of credit cards issued by JPMorgan Chase to share in a settlement the bank reached with the federal government over its credit collection practices. The government claimed that the bank subjected consumers to creditor harassment and lawsuits based, in many cases, on information that was incorrect.

In addition to the $50 million that consumers received under the settlement, 47 states and the District of Columbia will share an additional $136 million along with the Consumer Financial Protection Bureau. The bank also agreed to stop collection on more than a half million consumer debt accounts.

Some of the credit card company tactics that the bank admitted to engaging in included using false and deceptive documents in lawsuits. The bank also reported inaccurate credit information and obtained judgments to which it was not entitled. This resulted in consumer credit being damaged which could have created financial challenges beyond the credit card debt that the bank was attempting to collect.

The federal government reports that 34 percent of the complaints filed by consumers were related to creditors and their debt collection practices. Another eight percent of the complaints focused on credit card debt. Regrettably, it was merely two years ago when the same bank reached another settlement with the government for its illegal practices related to credit cards.

Even without wrongdoing by a credit card company, unexpected events such as unemployment can result in delinquent payments and other financial challenges. A Broward County attorney who is skilled in consumer and bankruptcy law may be the best resource for legal advice and information for someone with delinquent personal loans and other consumer debt issues.

Source: WTSP, “JPMorgan to pay $136M settlement of credit card probes,” Kevin McCoy, July 8, 2015