JP Morgan Chase Probed For Credit Card Collections

The Office of the Comptroller of the Currency (OCC) began an investigation into the business practices of JP Morgan Chase & Co. last year regarding allegations that the bank’s credit card litigation processes were littered with corruption.

According to the American Banker, current and former employees of the bank claim that the company used faulty account records and took procedural shortcuts in suing tens of thousands of delinquent credit card borrowers for at least two years. They claim that management had little regard for accuracy and that the company used patchy technology and unreliable external lawyers.

These allegations led to a regulatory probe by the OCC, which is part of the U.S. Department of the Treasury. The result of the probe led to Chase stopping the practice of suing delinquent borrowers.

Chase’s mistakes may call into question legal judgments that the company has already won as well as the legitimacy of billions of dollars in outstanding claims against consumers.

If you or a loved one has been wronged by consumer fraud, contact Sokolove Law for a free legal consultation and to find out if a consumer fraud lawyer may be able to help you.

Photo courtesy of Seth Anderson via Flickr.