The Connecticut Attorney General joined 46 other states on Wednesday in reaching a $136 million settlement with Chase Bank USA to resolve charges it engaged in deceptive practices, including robo-signing, its consumer credit card debt collection business.
Connecticut’s share will be $2.1 million. The money will be split between the state general fund, the attorney general’s consumer protection fund, payments to Chase customers in Connecticut, and funding temporary positions at the attorney general’s office to educate consumers on preventing situations like this one.
Attorney General George Jepsen served on the 13-state executive committee that investigated the alleged practices, so Connecticut received $750,000 more than it would have had Jepsen not been an executive member.
The states began investigating Chase in 2013, alleging it used false, inaccurate and deceptive affidavits in filing lawsuits against credit card consumers. Chase was accused of robosigning its internal debt collection matters and proof-of-debt to third party-debt buyers.
The settlement includes that Chase make reforms in its internal collection practices and when selling debts to licensed debt buyers.
