Mississippi sues Chase Bank over debt collection

Mississippi's attorney general has sued Chase Bank for slipshod documentation of debt collection cases it pursued against credit card customers.

In a complaint filed in state court Dec. 17, Attorney General Jim Hood accused the bank of making false demands for debt, filing unverified documents in court and selling debt to others backed by false affidavits. "Chase pursued Mississippi consumers for debt that they had paid or settled, they did not owe, or that they had discharged in bankruptcy," Hood said in a statement. 

The complaint, the result of an 18-month investigation, echoes allegations made in California's lawsuit against Chase, and in the Office of the Comptroller of the Currency's consent order against the bank, which both took aim at robo-signing of court documents used in debt collection lawsuits.

Responding to the OCC order in September, Bill Wallace, head of Chase's operations for consumer and community banking, said the company has overhauled its practices in the past two years and fixed the issues that affected customers.

Another 15 states are examining Chase's collection practices, according to The Wall Street Journal, with 14 of them participating in settlement discussions.

See related: Robo-signed collection cases under fire

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Updated: 03-26-2019