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 The settlement also includes about $50 million in restitution, the
sources said.
The nation's largest bank has been accused of relying on robo-signing
and other discredited methods of going after consumers for debts
they may not have owed and for providing inaccurate information to
debt buyers. Robo-signing refers to signing documents in mass
quantities without reviewing records.
The U.S. Consumer Financial Protection Bureau (CFPB), 47 states and
the District of Columbia are expected to announce the settlements as
soon as Wednesday, the people said.
The states will split some $95 million, while the CFPB will get $30
million, the people said. JPMorgan Chase and the CFPB did not return
calls for comment.
A spokesman for Iowa Attorney General Tom Miller, who has been
leading a group of states in probing JPMorgan's debt sales and
collection actions, declined to comment.
Mississippi and California are not expected to settle at the same
time, sources said. Both have lawsuits pending against JPMorgan over
debt collection practices.
California Attorney General Kamala Harris sued in 2013, claiming the
bank engaged in fraudulent and unlawful debt collection practices
against 100,000 California credit card borrowers over some three
years.
The state claims the bank flooded state courts with questionable
lawsuits, filing thousands every month, including 469 such lawsuits
in one day alone.
Kristin Ford, a spokeswoman for the California attorney general, did
not return calls for comment.
Mississippi Attorney General Jim Hood's lawsuit filed a similar
lawsuit against JPMorgan in 2013.
The Mississippi lawsuit said employees described a "chaotic" and
"disorganized" workplace marred by "rampant" mistakes, inadequate
training, constantly changing policies, high turnover and
unrealistic quotas.
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Rachael Ring, a spokeswoman for the Mississippi attorney general,
would only say the lawsuit is pending.
In September 2013, the U.S. Consumer Financial Protection Bureau
ordered JPMorgan to refund $309 million to about 2 million customers
for illegal credit card practices, including charging consumers for
credit card monitoring services they did not receive.
The Office of the Comptroller of the Currency that month also issued
a consent order against JPMorgan after identifying unsound practices
in connection with the bank's sworn document and collections
litigation. The order demanded changes, including to debt sales.
At the time, JPMorgan said collection issues affected less than 1
percent of customers and that it stopped filing collection lawsuits
in 2011 and stopped enrolling customers in credit monitoring
services in 2012.
In 2012, Iowa's Attorney General Miller helped negotiate a $26
billion settlement with the nation's largest banks over mortgage
abuses, which also included robo-signing.
(Reporting by Karen Freifeld; Editing by Lisa Shumaker)
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