Chase Bank Accused of Robo-Signing Credit Card Collections
Robo-signing exploded onto the news during the housing crisis when banks were accused of automatically signing default papers without properly reviewing them. Now, the robo-signing controversy is spilling over to another financial product–credit cards.
A consumer, Ruth Moya of Miami, Florida, is accusing J.P Morgan Chase of doing the same with credit card collections.
Moya fell behind on her credit card payments in 2008 when her husband’s business started to fail. As a result of that, J.P. Morgan filed two collection lawsuits against her. While their reasons behind the charges may have been valid, Moya says that the employees responsible for filing the lawsuits did not review her case. They simply signed the documents in front of them, as they do with hundreds of papers a day.
Moya’s lawsuit points to an office in San Antonio with roughly 10 Chase employees who are sent 50-100 collection actions per state per day. She says the employees sign through the affidavits to confirm they are accurate without actually reading them.
The lawsuit states “these affidavits were executed by Chase employees en masse, often thousands at a time, one-after-the-other, without the affiant reviewing or verifying the information attested to in the affidavits.”
The Consumer Financial Protection Bureau is starting to take a closer look at the debt collection industry. Consumers are reporting that they are hounded for debts they do not owe or threatened with jail time for failure to pay on their personal debts. Undoubtedly, cases like this one will also play a role in their monitoring process for the future.