Regulators probing banks’ debt collection practices
Federal regulators are widening an investigation into whether the nation’s biggest banks used flawed documents and incomplete records to collect on delinquent credit card debts, according to four people familiar with the probe.
The scope of the inquiry is unclear, but those familiar with it say the Office of the Comptroller of the Currency is expanding a probe that began in 2011 with allegations that JPMorgan Chase was using error-filled documents in lawsuits against debtors.
The regulatory agency is examining the process several banks use to verify consumers’ outstanding debt before taking legal action, according to several people familiar with the matter who were not authorized to speak about an ongoing investigation. An OCC spokesman declined to comment.
The concerns about credit card debt collection echo the wave of shoddy foreclosures after the housing market collapsed. In those cases, as homeowners defaulted on their loans in droves, mortgage servicers were accused of falsifying records and “robo-signing” hundreds of documents without reviewing them.
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I have letters from all the regulatory agencys
OTS. OCC. AG etc etc starting in the 1990’s
when I sent them proof of all the fraud going on .