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
Credit card issuers could see a reduced burden for 1 year under a @CFPB proposal issued this week. News Now: http://t.co/CYVXLUmVBq
4 hours ago
RT @CUEscan: Branches Will Be the Cornerstone of Growth http://t.co/fVqPPaGeVL http://t.co/xxMyKGQMrl
5 hours ago
RT @asmarterchoice: According to @Bankrate study, customers more likely to find FREE checking at #Creditunion than a bank! http://t.co/ntCb…
5 hours ago
Ditch monthly subscriptions to save $$, @YoungFreeMI Fielder tells @freep http://t.co/TFnsps4Dui #ASW2015
5 hours ago
.@federalreserve extends comment period for capital surcharges on systemically important U.S. bank holding cos. http://t.co/MOJJBn9DfA
7 hours ago