JPMorgan sued by Mississippi AG over credit card misconduct

(Reuters) – JPMorgan Chase & Co (JPM) was sued on Tuesday by Mississippi Attorney General Jim Hood, who accused the largest U.S. bank of violating state consumer protection laws in its alleged pursuit of delinquent payments by credit card customers. According to a complaint filed in a state court in Hinds County, Mississippi, JPMorgan has, since at least 2007, relied on “robo-signing” and other discredited practices to pursue consumers for sums they did not owe, already paid, or had excused in bankruptcy. Hood also accused JPMorgan of relying on “outhouse” law firms that would churn out lawsuits without first reviewing the underlying claims, and working with now-defunct arbitration firm Mann Bracken — dubbed “Mann Broken” by bank employees — that could not keep track of customer payments. On September 19, the U.S. Consumer Financial Protection Bureau and the Office of the Comptroller of the Currency ordered JPMorgan to refund $309 million to about 2 million customers they said were harmed by its debt collection and other credit card procedures.


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