Watch CBS News

JPMorgan Chase Settles Lawsuit With California

SACRAMENTO, Calif. (AP) - One of the nation's largest banks is agreeing to pay $100 million to settle a California lawsuit alleging it used illegal methods to collect debts from more than 125,000 credit card holders.

Attorney General Kamala Harris announced Monday that JPMorgan Chase & Co. will pay $50 million to customers, including about $10 million to customers in California.

The company will also pay $50 million in state penalties.

It is agreeing to change practices that the state says violated California law and led the company to file thousands of debt collection lawsuits between 2008 and 2011.

They include collecting incorrect amounts, selling bad credit card debt, and running what Harris' office calls a debt collection mill that "robo-signed" court documents.

JPMorgan Chase did not immediately respond to a request for comment.

View CBS News In
CBS News App Open
Chrome Safari Continue
Be the first to know
Get browser notifications for breaking news, live events, and exclusive reporting.