Chase Drops Credit Card Lawsuits - Other News

ADVERTISING DISCLOSURE

ADVERTISING DISCLOSURE:
Credit-Land.com is an independent, advertising-supported web site. Credit-Land.com receives compensation from most credit card issuers whose offers appear on our site. Compensation from our advertising partners impacts how and where their products appear on our site, including, for example, the order in which they may appear within review lists. Credit-Land.com has not reviewed all available credit card offers in the marketplace.

Credit Card Applications » News » Other » Chase Drops Credit Card Lawsuits

Chase Drops Credit Card Lawsuits

Chase Drops Credit Card Lawsuits
The content is accurate at the time of publication and is subject to change.

JPMorgan Chase has all but dismantled its collection department over the past several months by ceasing to file lawsuits in the effort to collect consumer debts in addition to terminating the employment of bank personnel that were involved in recovering such debts. According to American Banker, last year Chase dismissed “numerous regional collections teams.”

Chase has not disclosed why it is withdrawing the suits against in-debt credit card customers, but the move happens to follow on the heels of several rulings in state courts that hold in question the validity of the credit card claims of many banks. There was even a federal whistle-blower complaint last year, filed by a former JPMorgan vice president whose job it was to sell overdue credit card loans. The complaint, made by former executive Linda Almonte, alleges that Chase bank employees robo-signed the paperwork that was used to seek legal judgments against in-debt credit card users.

Robo-signing is when signed legal documents are produced at high-volume and it has been central to last year´s foreclosure scandal wherein many homeowners were being illegally evicted via robo-signed documents.

Almonte asserts that a number of JPMorgan account holders had less debt on their cards than claimed by the company and that, in fact, some of the customers facing legal action had paid down the entirety of their credit card obligations. She goes on to claim that she was fired upon notifying the bank that key legal documents required to sell off the credit card debt were missing. JPMorgan settled Almont´s suit.

Currently, JPMorgan has abandoned efforts to collect past-due credit card debt in six states which include New York, Florida, Washington, California, Maryland and Illinois, according to American Banker.The company has backed off from over 1,000 lawsuits nationwide that existed for the purpose of collecting their due on delinquent loans.

Should it come to light that sloppy, erroneous or blatantly fraudulent paperwork is what prompted JPMorgan Chase´s move, it could have humongous repercussions upon the entire financial industry. Some experts already hold the belief that robo-signing may be a practice that is widely prevalentin credit-card collections.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
Add to Favorites:

Related News:

A New Priority Pass Restaurant and Lounge in Washington D.C.

Posted: July 16, 2018

Hitting the lounge for some rest and relaxation when flying can be a great perk. And now people with Priority Pass membership - or a credit card giving them Priority Pass lounge access - have two new options to check out when passing ... Continue reading
New LL. Bean Credit Card

Posted: July 13, 2018

L.L. Bean's credit card portfolio was purchased by Citi Retail Services, and they have now partnered with MasterCard to launch a new credit card, offering 4% on purchases made at L.L. Bean. But that is not all; With the L.L. Bean ... Continue reading
5,000 Bonus Points From Hilton and Amex Offers

Posted: July 12, 2018

Are you planning a trip and thinking about staying at a Hilton Hotel? If so you might want to check out this new deal at Amex Offers, providing cardholders with 5,000 Membership Rewards points when they book a stay of $250 or more at ... Continue reading
Get the latest news, articles and expert advice delivered to your inbox. It's FREE.
Earn 5% cash back at different places each quarter like gas stations, grocery stores, restaurants, Amazon.com, or wholesale clubs up to the quarterly maximum each time you activate.
For Excellent, Good Credit
We'll match all the Miles you've earned at the end of your first year. For example, if you earn 30,000 Miles, you get 60,000 Miles.
For Excellent, Good Credit
0% Intro APR on Balance Transfers and Purchases for 18 months. After that, the variable APR will be 15.74% - 25.74% based on your creditworthiness*
For Excellent, Good Credit
You've successfully subscribed!

Please specify the following:All these fields are optional

Your Credit History
Themes you are interested in:

By providing this information you help us make our news letters more useful and informative. Thank you!