Archive Links

Consumer Archive
CU System Archive
Market Archive
Products Archive
Washington Archive
150x172_CUEffect.jpg
Contacts
LISA MCCUEVICE PRESIDENT OF COMMUNICATIONS
EDITOR-IN-CHIEF
MICHELLE WILLITSManaging Editor
RON JOOSSASSISTANT EDITOR
ALEX MCVEIGHSTAFF NEWSWRITER
TOM SAKASHSTAFF NEWSWRITER

News Now

Market
Chase Halts Sales Of Card Debt, Braces For Regulators' Crackdown
NEW YORK (7/8/13)--JPMorgan Chase has halted most of its sales of consumer credit card debt to collection agencies, indicating more sales would further damage its reputation on its collections practices and that it didn't want to give regulators more reason to probe its practices, according to Bloomberg News (July 1).
 
Bloomberg said court records indicate third-party collectors' lawsuits over Chase debts have dropped significantly since January, but sources disagree on whether sales stopped completely or were restricted.
 
The nation's largest bank has come under increasing scrutiny over how it pursues payments from credit card customers who fall behind in paying their debts. Two years ago, the bank stopped filing its own credit card collection lawsuits amid rising pressure.
 
In May, the bank was sued by California Attorney General Kamala Harris over "procedural shortcuts" and illegal robo-signing it allegedly took to sue thousands of borrowers.  Also, since 2011, the Office of the Comptroller of the Currency has been looking into the collections practices of the bank. JP Morgan is expecting a formal enforcement action stemming from nonmortgage consumer collections practices, said Bloomberg.

The Consumer Financial Protection Bureau, which now oversees  large debt collectors, began examining such practices earlier this year.


RSS





print
News Now LiveWire
Watching #SuperBowlXLIX this Sunday? Look for regional #creditunion #commercials @CltMetroCU @BECU @golden1cu #Seahawks #Patriots
8 hours ago
Philadelphia's American Bakery Workers FCU liquidated by @TheNCUA; @trumarkonline assumes shares
8 hours ago
More branch shutterings by @Citi: 4th-largest bank to close 10% of #Chicago area branches HT @CrainsChicago http://t.co/2vAvgucLY5
9 hours ago
56% struggle with subprime credit scores says @cfed survey HT @washingtonpost http://t.co/RHmMvuhNtw
10 hours ago
How to use social media for crisis communications Feb. 10 webinar from @SBAgov, @AgilityRecovery http://t.co/d16t8RHr7n
10 hours ago