Credit Card News

Advertising Disclosure is an independent, advertising-supported web site. receives compensation from many credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » News » Other » Chase Ordered to Pay Up

Chase Ordered to Pay Up

Add to Favorites:

Chase Card Services will be paying $136 million to settle up with Consumer Financial Protection Bureau (CFPB) and attorneys general in 47 states and the District of Columbia in a recent agreement. The deal was reached after an investigation found that Chase had violated the Dodd-Frank Wall Street Reform and Consumer Protection Act’s prohibitions against unfair, deceptive, or abusive acts and practices. The illegal practices occurred from 2009-2013.

Besides paying the $136 million in penalties Chase will also pay out $50 million in refunds to consumers, and $30 million in penalties to the Office of the Comptroller for the Currency on a related issue. Chase is also required to stop debt buyers from reselling debt and they can no longer sell certain kinds of debt.

“Chase sold bad credit card debt and robo-signed documents in violation of law,” said CFPB Director Richard Cordray. “Today we are ordering Chase to permanently halt collections on more than 528,000 accounts and overhaul its debt-sales practices. We will continue to be vigilant in taking action against deceptive debt sales and collections practices that exploit consumers.”

Zombie Debt and more

During the investigation it was discovered that they had engaged in illegal practices when it came to collecting on defaulted credit card debit and the sale of that debt. They found that Chase’s third party buyers were sold what they call “zombie debt,” which can include debt that was settled, held by deceased cardholders, discharged by bankruptcy, not owed, or other kinds of debt that cannot really be collected.

According to the CFPB Chase also filed deceptive debt collection lawsuits, which involved the use of robo-signed and illegally sworn statements. These documents were then used to get inaccurate or false judgments for unproved consumer debts.

More action needed by Chase

Due to the investigation Chase is also required to:

• Corroborate debt before selling to debt buyers
• Give consumers access to their account information and let them know that their debt is being sold
• Refrain from selling zombie debts and other kinds of predetermined debt
• Dismiss, withdrawn or terminate all pre-judgement collections litigation from January 1, 2009
• Cease robo-signing affidavits
• Verify debts when lawsuits are filed

Add to Favorites:

Related News:

New Home Page Introduces Improvements
New Home Page Introduces Improvements

By Elizabeth Nelson, Posted: July 21, 2015

Customers of Chase will find a new, more streamlined design waiting for them next time they log on to Continue reading
Credit Cards Continue To Rally
Credit Cards Continue To Rally

By Dar Dowling, Posted: June 08, 2015

Across the board U.S payment cards of all kinds continue to be hot with consumers last year, according to a new study. But when push came to shove, credit cards outperformed debt and prepaid cards. Continue reading
Consumer Confidence Rising This Summer
Consumer Confidence Rising This Summer

By Dar Dowling, Posted: August 12, 2015

A consistent increase in consumer credit card debt is actually a good development, according to a new study by Equifax, showing that consumers are continuing to recover from the great recession. Continue reading
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
Unlimited 1.5x rewards on every purchase, every day. For every $1 you spend, you earn 1.5x Miles.
For Excellent, Good Credit
Get a dollar-for-dollar match of all the cash back you’ve earned at the end of your first year, automatically.
For Excellent, Good Credit
Guaranteed $500 Unsecured Credit Limit
For Bad Credit