California AG Sues Chase for “Robo-Signing” in Debt Collection Cases
By Consumers Union on Thursday, May 9th, 2013
Today, the California Attorney General announced a lawsuit against JPMorgan Chase, the nation’s biggest bank, over its debt collection practices. The suit alleges that Chase engaged in widespread, illegal robo-signing, among other unlawful practices, to commit debt-collection abuses against approximately 100,000 California credit card borrowers over at least a three-year period.
The AG claims that “At nearly every stage of the collection process, [Chase] cut corners in the name of speed, cost savings, and their own convenience, providing only the thinnest veneer of legitimacy to their lawsuits.”
Consumers Union has long been calling for an overhaul of the debt collection system. Our 2011 joint report with the East Bay Community Law Center featured stories from real consumers who were hounded by collectors and subject to unfair and abusive practices. We continue to work with states and the federal government to try and rid the industry of these abuses and fight for fairer treatment of consumers struggling to repay their debts.
Have you had bad experiences with debt collectors? Do you think the industry needs reform? Tell us in the comments.