Mississippi joined California in staying out of a legal settlement announced Wednesday by which JPMorgan Chase will pay 47 states and the federal government $125 million for illegal consumer credit collection practices.The settlement announced by the U.S.
Consumer Financial Protection Bureau and the attorneys general of several states also includes $50 million in restitution to credit card holders. A breakdown of the $125 million portion of the multi-state settlement gives participating states $95 million to split. The remainder goes to the Consumer Financial Protection Bureau, or CFPB as the watchdog agency is widely known.
Mississippi and California apparently like their chances of gaining a much larger settlement or judgment through separate suits filed against JPMorgan Chase that claim a range of illegal consumer debt practices by the financial services giant.
The Mississippi Attorney General’s Office said its suit alleges wide-spread misconduct by JP Morgan and the third party collection companies that bought consumer debt from JP Morgan. Many of the collection efforts mimicked the “robo-signed” documents and other illegalities JPMorgan and other large national lenders engaged in during the nationwide housing foreclosure crisis of the previous decade, the state’s suit says.