WASHINGTON (Sputnik) — Forty-seven US states joined CFPB in seeking a $106 million penalty to be paid to the states where violations occured, another $30 million civil penalty to be paid to CFPB and still another $30 million civil penalty to be paid to the Office of the Comptroller of the Currency.
“Chase sold bad credit card debt and robo-signed documents in violation of law. Today, we are ordering Chase to permanently halt collections on more than 528,000 accounts and overhaul its debt-sale practices.”
Between 2009 and 2013, Chase Bank and Chase BankCard Services Inc. sought to collect debts when consumers defaulted on their payments by contacting them, filing collections lawsuits and selling accounts to third-party debt buyers, according to the CFPB.
The practices, CFPB added, were in violation of the Dodd-Frank Wall Street Reform and Consumer Protection Act, which prohibits abusive financial acts and practices.
CFPB will also prohibit robo-signing affidavits and verify debts before a lawsuit is filed. Robo-signing is mass signing of foreclosure documents without reviewing them.
The Consumer Financial Protection Bureau is a US government agency helping consumers by enforcing fair financial regulatory rules and allowing consumers to take more control over their economic decisions.
