The California Attorney General’s office has sued JP Morgan Chase Bank for abusive debt collection practices.
Apparently, over the last few years, Chase flooded California courts with unpaid credit-card lawsuits by using illegal robo-signing and other unlawful debt collection practices. Chase is accused of failing to provide borrowers with debt collection notices as required by law, before initiating lawsuits. Chase also apparently failed to investigate whether certain borrowers were active military personnel or service-members, even though “swearing” under penalties of perjury that they were not, which is required for default judgments to be entered against individuals who have not responded to a lawsuit.
According to the lawsuit, “At nearly every stage of the collection process, Defendants cut corners in the name of speed, cost savings, and their own convenience, providing only the thinnest veneer of legitimacy to their lawsuits.”
“Robo-signing” refers to the practice of signing declarations, affidavits, and other documents in voluminous quantities, without having any knowledge of the facts in the document and without regard to the truth or accuracy as to those facts. In Chase’s case, Chase would often file affidavits, “under penalty of perjury” that the declarant was an “assistant treasurer and officer Chase USA” when in reality, it was a “low-level employee” of Chase “who has never even seen the Complaint.”
Copy of the Complaint – http://oag.ca.gov/system/files/attachments/press_releases/Complaint_0.pdf?