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In a major action under the Dodd-Frank Act's unfair, deceptive, or abusive acts or practices prohibitions, JPMorgan Chase will pay over $200 million in refunds and penalties, overhaul its debt sales and halt collections on 528,000 consumer accounts.

The Consumer Financial Protection Bureau, 47 states and the District of Columbia took action against the giant bank for selling bad credit card debt and illegally robo-signing court documents. The CFPB found that Chase sold "zombie debts" to third-party debt buyers, including accounts that had already been settled or discharged.

The order requires Chase to document and confirm debts before selling them to debt buyers or filing collections lawsuits. Chase must also prohibit debt buyers from reselling debt and is barred from selling certain debts. Chase is ordered to permanently stop all attempts to collect, enforce in court or sell more than 528,000 consumer accounts.

According to CFPB, Chase will pay at least $50 million in consumer refunds, $136 million in penalties and payments to the CFPB and states, and $30 million to the Office of the Comptroller of the Currency in a related action.

The period covered in the consent order is 2009 to 2013, during which Chase assisted third-party debt buyers in deceptively collecting debt and robo-signed affidavits to sue consumers for unverified debt.

During those four years, Chase filed more than 528,000 debt collections lawsuits against consumers and provided more than 150,000 sworn statements to debt buyers for their collections lawsuits, often using robo-signed documents.