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Yesterday, the American Banker reported that Chase has stopped filing lawsuits to collect consumer debtors. Moreover, they did it quietly and quickly. With concerns over sloppy procedures in debt collection, akin to the robo-signing problems in the mortgage industry, this news was quite interesting.
H/t to our reader who pointed me to the story.
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While problems exist and likely need more repair, I believe Chase made the right decision.However, this event makes better press even though an attempt is made to right a wrong or ensuring there are better controls and due diligence reviews in place.
Posted by: Raymond Bell | January 13, 2012 at 08:20 AM
While I have not personally dealt with cases with Chase that have these types of problems, the law suits filed by the debt buying industry are often woefully inadequate, often filed with no documented basis for the debt or with false affidavits. And the most concerning part is the local justice courts usually just sign off on the entire process and give them the judgments they are seeking.
Posted by: John Skiba | January 18, 2012 at 07:41 AM