JP Morgan Chase Reveals Errors in Debt Collection Lawsuits
According to a recent report in the Wall Street Journal, JP Morgan Chase has made significant errors in debt collection lawsuits against its consumers.
The reports spawn from an internal review that was leaked from JP Morgan showing that the bank had made errors in 9% of 1,000 cases it surveyed in a prior year. Any mistakes cause concern, but especially when they impact nearly 1 out of every 10 Chase customers.
The issues in the survey ranged from higher than necessary interest fees to bloated debt amounts, all of which JP Morgan claims were “small.” These errors supposedly had very little effect on the consumers, if any, but it begs the question of how far they can go. In California alone, Chase filed over 100,000 debt collection lawsuits between 2008 and 2011.
Right now, 13 states are examining JP Morgan Chase Bank’s debt collection practices in an effort led by Attorney General Tom Miller from Iowa. Last year, Miller was able to negotiate $26 billion worth of settlement fees for mortgage abuses. While it may be difficult to generate anything close to that in this case, there is some evidence to indicate that a settlement is due.