JPMorgan Faces $80 Million Fine for Collections Actions

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U.S. federal regulators are preparing to impose a fine of $80 million on JPMorgan Chase relating to its dealings with retail customers during the recession, the New York Times reported, citing people familiar with the matter.

Under the terms of the civil orders, the bank will have to acknowledge internal flaws, the paper said.

The Office of the Comptroller of the Currency and the Consumer Financial Protection Bureau are expected to announce the actions as soon as next month, the paper said.

The regulators are investigating reports that the bank sold an identity-theft protection with false promises to credit card customers through a third-party vendor, the paper reported.

In another set of actions, the regulators are targeting the bank for flooding state courts with lawsuits that used faulty documentation to substantiate the amount owed by consumers, the people told the paper.

JPMorgan (JPM) wasn't immediately available for comment outside of normal business hours.

Reuters earlier reported the bank already faces the prospect of paying $6 billion to the U.S. government to settle lawsuits over bonds backed by subprime mortgages.


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