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Bear Stearns to settle charges

September 10, 2008|From Times Wire Services

Bear Stearns and its mortgage servicing unit agreed to pay $28 million to settle charges of abusive loan-collection practices that took place before the investment bank's collapse.

The Federal Trade Commission said Bear Stearns, acquired May 30 by JPMorgan Chase & Co., and its EMC Mortgage Corp. unit violated consumer-lending laws in servicing subprime mortgages.

The companies are accused of imposing unauthorized charges such as fees for late payment, property inspection and loan modification, the FTC said. The companies are also accused of misrepresenting to borrowers what they owed on home mortgages.

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