In order to settle US state and federal authorities' investigations, JPMorgan Chase & Co is expected to pay $125 million. The probes were related to JPM's collections and sales of consumer credit card debt. The settlement will also include around $50 million in the form of compensation.

The agreement with the US Financial Protection Bureau, 47 states and the District of Columbia can be announced by Wednesday. It is said that the states will have to share $95 million and the CFPB will get $30 million.

Complaints against the nation's largest bank involves relying on robo-signing and other wrong methods of approaching consumers for debts that they might not have taken and providing wrong information to debt buyers.

JP Morgan stated that California and Mississippi have also filed separate civil cases against the bank. In 2013, California attorney General Kamala Harris said that without sufficient legal proof, JP Morgan filed so many lawsuits against credit card borrowers.

Harris has also affirmed that the bank was involved in the wrong and unlawful debt collection practices against 100,000 California credit card borrowers. In 2013, Mississippi filed a similar lawsuit against JP Morgan in 2013.

Rachael Ring, a spokeswoman for the Mississippi attorney general, said that the lawsuit is pending. The Office of the Comptroller of the Currency has also charged the bank for indulging in wrong billing practices for credit card 'add-on' products by billing customers for the services they have not received.