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California sues JPMorgan over debt collection practices

The bank allegedly used robo-signing to overwhelm courts with more than 100,000 suits against consumers

California Attorney General Kamala Harris is suing JPMorgan Chase & Co. for allegedly running a “debt collection mill” in an effort to recover credit card debt from thousands of the state’s consumers.

The suit accuses the bank of overwhelming California courts with more than 100,000 lawsuits in order to win default judgments against customers who owed the bank money. The issue, Harris says, is that the bank was only able to file the staggering number of suits by repeatedly “cut[ting] corners in the name of speed, cost savings and their own convenience.”

Alanna Byrne

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