Save up to 90% on a Hartford Courant subscription. Click here to sign up now!

Kamala Harris

California settles debt collection suit with JPMorgan Chase

The nation's largest bank will pay $100 million to settle a California lawsuit alleging it used illegal methods to collect debts from more than 125,000 credit card holders, the state's attorney general announced Monday.

JP& Co., the largest U.S. bank by assets, will pay an estimated $10 million to consumers in California as part of a previously announced $50 million national agreement, and will pay another $50 million in penalties to the state to settle a 2013 lawsuit.

It is agreeing to change practices that the state says violated California law and led the company to file thousands of debt collection lawsuits between 2008 and 2011. They include collecting incorrect...