JPM Chase Quietly Halts Suits Over Consumer Debts
Robo-signing, or the high-volume production of signed legal documents, has been a key element of the governmental and media foreclosure reviews. Chase’s current pullback raises at least the possibility that at least some banks may have documentation problems in other business lines.
Academics and attorneys who defend consumers against debt claims have leveled their heaviest criticism at collection agencies rather than banks themselves. The agencies allegedly seek on a regular basis to collect debts in the absence of legitimate documentation. Efforts to collect a bank’s own debt generally have been regarded by consumer advocates as more credible than those by collections agencies, which pursue secondhand claims.
“If sloppy record keeping and problems with false affidavits is a problem with mortgages, it’s 100 times bigger in credit card accounts,” says Michelle Weinberg of the Legal Assistance Foundation of Metropolitan Chicago. Even so, Weinberg says, “On documentation issues, it wouldn’t occur to me that Chase wouldn’t be able to prove up its own account.”
Check out in full here…