State reaches debt collection agreement with Chase

1 year 11 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 "Chase often used wrong or outdated information to pursue debts, including debts that had already been discharged.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
COLUMBIA - The Columbia Regional Airport is almost fully equipped to handle to the increased traffic that comes with a... More >>
2 hours ago June 28, 2017 Jun 28, 2017 Wednesday, June 28 2017 Wednesday, June 28, 2017 6:45:00 PM CDT in News
COLUMBIA - The total solar eclipse is now less than two months away and people are beginning to plan. ... More >>
2 hours ago June 28, 2017 Jun 28, 2017 Wednesday, June 28 2017 Wednesday, June 28, 2017 6:10:00 PM CDT in Eclipse Planning
BYRNES MILL (AP) — An eastern Missouri man is charged with forcing his daughter to sleep in a dog crate... More >>
3 hours ago June 28, 2017 Jun 28, 2017 Wednesday, June 28 2017 Wednesday, June 28, 2017 5:35:10 PM CDT in News
KANSAS CITY (AP) — University of Missouri System officials are no longer counting on state funding to help build an... More >>
3 hours ago June 28, 2017 Jun 28, 2017 Wednesday, June 28 2017 Wednesday, June 28, 2017 5:23:00 PM CDT in News
COLUMBIA - Two big questions still loom in the case involving a Missouri State Highway Patrol trooper and a man... More >>
3 hours ago June 28, 2017 Jun 28, 2017 Wednesday, June 28 2017 Wednesday, June 28, 2017 5:21:00 PM CDT in News
JEFFERSON CITY - The FEMA Disaster Recovery Centers in Linn, St. Robert, and Ellington will close permanently on Saturday, July... More >>
3 hours ago June 28, 2017 Jun 28, 2017 Wednesday, June 28 2017 Wednesday, June 28, 2017 5:18:00 PM CDT in News
JEFFERSON CITY - A special task force aimed at evaluating transportation in the state and addressing funding issues met Wednesday... More >>
5 hours ago June 28, 2017 Jun 28, 2017 Wednesday, June 28 2017 Wednesday, June 28, 2017 3:58:00 PM CDT in News
CLAYTON (AP) — A jail inmate who escaped from a hospital has been arrested at a mobile home park in... More >>
5 hours ago June 28, 2017 Jun 28, 2017 Wednesday, June 28 2017 Wednesday, June 28, 2017 3:20:00 PM CDT in News
COLUMBIA - Boone County is heading east. 75 county officials will travel to Maryland this fall to train with... More >>
5 hours ago June 28, 2017 Jun 28, 2017 Wednesday, June 28 2017 Wednesday, June 28, 2017 3:08:00 PM CDT in News
COLUMBIA - Boone County sheriff’s detectives arrested a second suspect Wednesday morning in connection with a shooting that wounded two... More >>
6 hours ago June 28, 2017 Jun 28, 2017 Wednesday, June 28 2017 Wednesday, June 28, 2017 2:50:00 PM CDT in News
KANSAS CITY (AP) — A Missouri man who spent nearly two decades in mental hospitals after entering a disputed plea... More >>
6 hours ago June 28, 2017 Jun 28, 2017 Wednesday, June 28 2017 Wednesday, June 28, 2017 2:26:00 PM CDT in News
FULTON — A 16-year-old girl is in critical condition after she was hit by a car Wednesday morning. Fulton... More >>
7 hours ago June 28, 2017 Jun 28, 2017 Wednesday, June 28 2017 Wednesday, June 28, 2017 2:00:00 PM CDT in News
ST. LOUIS — Ryan Ferguson has settled a portion of his lawsuit against police, nearly four years after his 40-year... More >>
8 hours ago June 28, 2017 Jun 28, 2017 Wednesday, June 28 2017 Wednesday, June 28, 2017 12:44:00 PM CDT in Top Stories
COLUMBIA -Multiple funerals took place on Wednesday at Sen. Roy Blunt's Columbia office. CoMo for Progress, a liberal group,... More >>
9 hours ago June 28, 2017 Jun 28, 2017 Wednesday, June 28 2017 Wednesday, June 28, 2017 11:30:00 AM CDT in News
KANSAS CITY (AP) — A Kansas City, Missouri , man is jailed on $150,000 bond after being accused of a... More >>
11 hours ago June 28, 2017 Jun 28, 2017 Wednesday, June 28 2017 Wednesday, June 28, 2017 9:43:53 AM CDT in News
CHARLESTON (AP) — A judge has dismissed an assault charge against a southeastern Missouri sheriff being investigated in the death... More >>
11 hours ago June 28, 2017 Jun 28, 2017 Wednesday, June 28 2017 Wednesday, June 28, 2017 9:22:00 AM CDT in News
COLUMBIA - As construction continues in the downtown area, workers are finding it difficult to be around. "It's making... More >>
1 day ago June 27, 2017 Jun 27, 2017 Tuesday, June 27 2017 Tuesday, June 27, 2017 7:57:00 PM CDT in News
COLUMBIA -The City of Columbia Public Works Department held an informal open house Tuesday, giving people a chance to ask... More >>
1 day ago June 27, 2017 Jun 27, 2017 Tuesday, June 27 2017 Tuesday, June 27, 2017 7:38:00 PM CDT in News
Columbia, MO
Broken Clouds 79°
10pm 80°
11pm 79°
12am 77°
1am 76°

Select a station to view its upcoming schedule:

Coming Up Next

8:30p
The Carmichael Show
9:00p
This Is Us
10:00p
KOMU 8 News @ 10
8:00p
DC's Legends of Tomorrow
9:00p
KOMU 8 News @ Nine on The CW
9:30p
Seinfeld

Tonight's Schedule

7:00p
Little Big Shots: Forever Young
8:00p
The Carmichael Show
8:30p
The Carmichael Show
9:00p
This Is Us
7:00p
Arrow
8:00p
DC's Legends of Tomorrow
9:00p
KOMU 8 News @ Nine on The CW
9:30p
Seinfeld