NEW YORK (TheStreet) -- JPMorgan Chase & Co. (JPM) and several other big banks are said to be under investigation by the U.S. Trustee Program, a branch of the Justice Department, regarding allegations the banks violated federal bankruptcy law, the New York Times reports.
The allegations say that along with JPMorgan, Bank of America (BAC) , Citigroup (C) , and Synchrony Financial (SYF) ignored discharge injunctions, which void consumer debts, and kept the debts going on credit reports, forcing consumers to make payments, despite having no legal obligation to the bill, the Times notes.
"A bank will refuse to correct the credit report to reflect the obligor's bankruptcy discharge, which means that the debtor will feel significant added pressure to obtain a 'clean' report by paying the debt," a White Plains federal bankruptcy judge said in court documents, the Times added.
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The banks say they are in compliance with federal law, according to the Times.
Shares of JPMorgan are lower by 0.18% to $60.45 in late morning trading on Thursday.
Separately, TheStreet Ratings team rates JPMORGAN CHASE & CO as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation: