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JP Morgan Chase Debt Collection Practices Investigation

JP Morgan Chase is one of the biggest banks in the US, so it may be unsurprising that the company seems to attract more lawsuits than normal. Even so, the variety of lawsuits against it is interesting: a mortgage discrimination case filed by the Justice Department, sex and race discrimination cases filed by the US Department of Labor, a case alleging that JP Morgan siphoned billions of dollars in collateral from Lehman Brothers just before it collapsed, and various other cases concerning employee overtime, alleged self-dealing in its 401(k) plan, violations of the Fair Credit Reporting Act, and so on.

What we’re currently investigating are its debt collection practices, to see if a class action suit is needed.

JP Morgan Chase has had plenty of credit card debt lawsuits filed against it as well. In 2012, it settled a lawsuit alleging it had raised monthly minimum payments to generate more fees. In a 2013 lawsuit, the Consumer Financial Protection Bureau (CFPB) alleged that credit card customers had been charged for services they had never asked for and, in some cases, never received. In 2015, the CFPB and forty-seven states sued it over alleged practices of selling “zombie debts” to third-party debt buyers, including debts that were inaccurate, settled, erased in bankruptcy, not owed, owed by dead persons, or not collectible for other reasons; the lawsuit also alleged the company robo-signed documents for debt collection lawsuits against customers.

Then there was the interesting document that found its way into the hands of reporters—a JP Morgan Chase internal survey of 1,000 credit card collection lawsuits it had brought against customers, which found errors in as many as 9% of the suits.

In recent years, we’ve seen all too many big banks and credit card company use unfair or illegal tactics to try to collect credit card debt. We’re currently investigating whether JP Morgan Chase is still engaging in sloppy or illegal debt collection practices, and whether a class action lawsuit is needed to recover money for customers and warn the company to follow the law.

Here are some kinds of behavior that state and federal laws forbid:

  • Harassing you, for example by making your phone ring repeatedly.
  • Sending debt collection letters that are confusing.
  • Sending debt collection letters that contain misstatements or misrepresentations, such as misstating the amount of the debt, falsely claiming that the sender is lawyer, or threatening to take action that the sender can’t legally take.
  • Trying to collect debts which you have already paid or which have been discharged in bankruptcy.
  • Trying to collect old debts for which the statute of limitations has expired.
  • Adding extra fees and charges to the amount you owe.
  • Talking about your debt to third parties, such as family, friends, or employers.
  • Robo-calling you on your cell phone about your debt.
  • Calling you too late at night or too early in the morning, or calling you too many times.
  • Refusing to stop calling when you ask them to.
  • Threatening you.

Laws vary in different states, but the Telephone Consumer Protection Act (TCPA)—which forbids robo-calls about debt to cell phones—is a federal law that applies in all fifty states.

If you’ve experienced questionable debt collection practices with a JP Morgan Chase credit card, fill out the form on this page and attach evidence, such as letters received or cell phone numbers called and dates of calls.

Article Type: Investigation
Topic: Consumer
No case events.
Tags: Unlawful Debt Collection