State reaches debt collection agreement with Chase

1 year 4 months 3 weeks ago July 08, 2015 Jul 8, 2015 Wednesday, July 08 2015 Wednesday, July 08, 2015 2:06:00 PM CDT in News
By: Katie Grunik, KOMU 8 Digital Producer

JEFFERSON CITY - Attorney General Chris Koster announced Wednesday a settlement with Chase Bank to change its unlawful credit card debt collection practices.

Koster said the national settlement will provide relief to more then 2,400 customers in Missouri and 525,000 nationwide. Attorneys general in 47 states and the Consumer Financial Protection Bureau reached the $136 million joint state-federal settlement. Chase will pay over $910,000 to the state of Missouri. 

"Chase's credit card debt-collection practices harmed thousands of consumers here in Missouri and across the country," Koster said. "Chase often used wrong or outdated information to pursue debts, including debts that had already been discharged. Chase must now change its business practices and treat consumers fairly in the future."

Koster said investigators found Chase pursued collections based on information that was incorrect or even false including times where the debt listed the wrong amount, was tied to the wrong person or was time barred.  

Affected customers include those who were sued by Chase for credit card debts and obtained judgements between Jan 1, 2009, and June 30, 2014. Chase will notify those affected and request major credit reporting agencies to not report the judgements. 

Chase estimated it has provided $120,000 in restitution to 115 Missouri consumers. The agreement will require Chase to significantly reform its debt-collection practices. It also requires new safeguards to ensure accurate information and that inaccurate information be corrected.  

According to the joint state-federal probe, Chase:

  • Subjected consumers to collections activity for accounts that were not theirs, in amounts that were incorrect or that were legally noncollectable.
  • Subjected consumers to inaccurate credit reporting and unlawful judgments that may hurt consumers' ability to obtain credit, employment, housing, and insurance in the future.
  • Sold certain accounts to debt buyers that were inaccurate, settled, discharged in bankruptcy, not owed by the consumer, or otherwise noncollectable.
  • Filed lawsuits and obtained judgments against consumers using false and deceptive affidavits and other documents that were prepared without following required procedures, a practice commonly referred to as "robo-signing." These practices misled consumers and courts and caused consumers to pay false or incorrect debts and incur legal expenses and court fees to defend against invalid or excessive claims.
  • Made calculation errors when filing debt collection lawsuits that sometimes resulted in judgments against consumers for incorrect amounts.

The Attorney General said prohibiting the resale of debt is significant. Koster said previously initial buyers of Chase's consumer credit card debt could resell the debt, the subsequent buyer could flip the debt to a third buyer, and the process could repeat itself many times over. Transmitting incorrect information to subsequent buyers could result in long-term harm to the consumer, who would have the difficult or even impossible burden of correcting the errors.

Koster said debt collectors are bound by state and federal laws, including the Fair Debt Collection Practices Act, which prohibits debt collectors from using abusive, unfair, or deceptive practices to collect from consumers.

Consumers who have complaints about unfair debt-collection actions should file a complaint with the Attorney General's Office online or by calling 800-392-8222.

More News

Grid
List
CAMDEN COUNTY - One man was airlifted to the hospital Friday after his vehicle overturned. According to the Missouri... More >>
6 hours ago December 03, 2016 Dec 3, 2016 Saturday, December 03 2016 Saturday, December 03, 2016 9:22:34 PM CST in News
KANSAS CITY (AP) - Authorities are investigating after tools and equipment were stolen from a Kansas City woodworking shop where... More >>
7 hours ago December 03, 2016 Dec 3, 2016 Saturday, December 03 2016 Saturday, December 03, 2016 8:54:00 PM CST in News
KIRKSVILLE - The Kirksville Arts Center broke out in flames Friday evening. According to an email from the Kirksville... More >>
8 hours ago December 03, 2016 Dec 3, 2016 Saturday, December 03 2016 Saturday, December 03, 2016 7:42:00 PM CST in News
COLUMBIA - A film about the life of a Missouri artist and politician was shown for free on Saturday. ... More >>
10 hours ago December 03, 2016 Dec 3, 2016 Saturday, December 03 2016 Saturday, December 03, 2016 6:09:00 PM CST in News
JEFFERSON CITY - Stephen Webber has been elected as the new Chair of the Missouri Democratic Party on Saturday. ... More >>
11 hours ago December 03, 2016 Dec 3, 2016 Saturday, December 03 2016 Saturday, December 03, 2016 4:12:00 PM CST in News
COLUMBIA - People came to celebrate Kwanzaa early this year at the Progressive Missionary Baptist on Saturday. The African-American... More >>
12 hours ago December 03, 2016 Dec 3, 2016 Saturday, December 03 2016 Saturday, December 03, 2016 4:05:00 PM CST in News
SPRINGFIELD (AP) — A Missouri woman faces 12 years in federal prison for leading a fraud scheme. The U.S.... More >>
12 hours ago December 03, 2016 Dec 3, 2016 Saturday, December 03 2016 Saturday, December 03, 2016 3:29:38 PM CST in News
COLUMBIA – Over 40 local authors showed off their work and networked with other writers at the Local Authors Open... More >>
13 hours ago December 03, 2016 Dec 3, 2016 Saturday, December 03 2016 Saturday, December 03, 2016 2:55:00 PM CST in News
COLUMBIA - Around 10 a.m. Saturday, a man driving his car northbound near Highway 63 and Stadium flipped over. No... More >>
16 hours ago December 03, 2016 Dec 3, 2016 Saturday, December 03 2016 Saturday, December 03, 2016 11:38:33 AM CST in Top Stories
JEFFERSON CITY (AP) — Missouri lawmakers have struggled to find a way to pay for repairs along thousands of miles... More >>
17 hours ago December 03, 2016 Dec 3, 2016 Saturday, December 03 2016 Saturday, December 03, 2016 10:59:00 AM CST in News
ST. LOUIS (AP) — Missouri is seeing a startling decline in methamphetamine lab seizures, but it isn't because users are... More >>
17 hours ago December 03, 2016 Dec 3, 2016 Saturday, December 03 2016 Saturday, December 03, 2016 10:50:00 AM CST in News
COLUMBIA - The Women's Symphony League kicked off the annual Holiday Home Tour, which is its biggest fundraiser of the... More >>
23 hours ago December 03, 2016 Dec 3, 2016 Saturday, December 03 2016 Saturday, December 03, 2016 4:12:00 AM CST in News
JEFFERSON CITY- The Jefferson City Fire Department responded to reports of smoke coming from a building in the 200 block... More >>
1 day ago December 03, 2016 Dec 3, 2016 Saturday, December 03 2016 Saturday, December 03, 2016 3:57:00 AM CST in Top Stories
COLUMBIA - Following the election of Donald Trump, some students gathered for what they called a "positivity event". KOMU sent... More >>
1 day ago December 02, 2016 Dec 2, 2016 Friday, December 02 2016 Friday, December 02, 2016 7:05:00 PM CST in News
JEFFERSON CITY (AP) — Missouri lawmakers are proposing bills that would make attacking a law enforcement officer a hate crime.... More >>
1 day ago December 02, 2016 Dec 2, 2016 Friday, December 02 2016 Friday, December 02, 2016 4:51:13 PM CST in News
JEFFERSON CITY (AP) — Lawmakers are proposing bills that would make Missouri a right-to-work state. The Springfield News-Leader... More >>
1 day ago December 02, 2016 Dec 2, 2016 Friday, December 02 2016 Friday, December 02, 2016 4:46:41 PM CST in News
KANSAS CITY (AP) — A former Kansas City, Missouri, man has been sentenced to 15 years in prison for his... More >>
1 day ago December 02, 2016 Dec 2, 2016 Friday, December 02 2016 Friday, December 02, 2016 4:23:47 PM CST in News
JEFFERSON CITY - Gov. Nixon and his wife Georganne kicked off the holiday season in the state's capital with Friday's... More >>
1 day ago December 02, 2016 Dec 2, 2016 Friday, December 02 2016 Friday, December 02, 2016 3:36:00 PM CST in News
Columbia, MO
Broken Clouds 37°
5am 37°
6am 37°
7am 37°
8am 36°

Select a station to view its upcoming schedule:

Coming Up Next

4:00a
Paid Program
4:30a
Wild About Animals
5:00a
Huntline TV
4:00a
Paid Program
4:30a
Paid Program
5:00a
Paid Program

Tonight's Schedule

6:00p
Football Night in America
7:20p
Sunday Night Football
6:00p
Labyrinth
8:00p
Marvel's Agents of S.H.I.E.L.D.
9:00p
KOMU 8 News @ Nine on The CW
9:30p
Seinfeld