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Economy
In reply to the discussion: Weekend Economists ask the Question of the Year (so far) July 11-12 2015 [View all]Demeter
(85,373 posts)55. Calling Off the Credit-Card Debt Collectors By Teresa Tritch THIS IS HUGE!
http://takingnote.blogs.nytimes.com/2015/07/09/calling-off-the-credit-card-debt-collectors/?_r=0
For years, consumer advocates have warned of abuse, deception and unfairness in credit-card debt collections by banks and third-party debt collectors.
This week, the Consumer Financial Protection Bureau and the attorneys general of 47 states and Washington, D.C. brought an enforcement action against JPMorgan Chase for abuse, deception and unfairness in credit card collection cases.
Some highlights from the action:
On some 500,000 credit card accounts it sent to collections litigation in recent years, Chase used illegally sworn documents to obtain false or inaccurate judgments for unverified debts.
The bank sold zombie debts to third-party debt collectors, including accounts that were inaccurate, settled, discharged in bankruptcy, not owed or otherwise not collectible.
Chase helped those third-party collectors obtain court judgments against borrowers by providing more than 150,000 sworn statements attesting to the accuracy and validity of the debt. But according to the consumer bureau, Chase systematically failed to prepare, review, and execute truthful statements as required by law.
Chase failed to notify customers and the courts when it became aware of these problems.
The enforcement action requires Chase to stop collecting on the debts it sent to litigation between January 1, 2009 and June 30, 2014 and to notify customers that it will not try to collect. It must contact the major credit bureaus to request that the judgments not be reported against those consumers. It also must refund at least $50 million to customers who have already paid up. The refunds are for amounts that the customers were told to pay above what they owed when the debt was referred to litigation, plus 25 percent of the excess...
ALL I CAN SAY IS: "WOW!"
For years, consumer advocates have warned of abuse, deception and unfairness in credit-card debt collections by banks and third-party debt collectors.
This week, the Consumer Financial Protection Bureau and the attorneys general of 47 states and Washington, D.C. brought an enforcement action against JPMorgan Chase for abuse, deception and unfairness in credit card collection cases.
Some highlights from the action:
On some 500,000 credit card accounts it sent to collections litigation in recent years, Chase used illegally sworn documents to obtain false or inaccurate judgments for unverified debts.
The bank sold zombie debts to third-party debt collectors, including accounts that were inaccurate, settled, discharged in bankruptcy, not owed or otherwise not collectible.
Chase helped those third-party collectors obtain court judgments against borrowers by providing more than 150,000 sworn statements attesting to the accuracy and validity of the debt. But according to the consumer bureau, Chase systematically failed to prepare, review, and execute truthful statements as required by law.
Chase failed to notify customers and the courts when it became aware of these problems.
The enforcement action requires Chase to stop collecting on the debts it sent to litigation between January 1, 2009 and June 30, 2014 and to notify customers that it will not try to collect. It must contact the major credit bureaus to request that the judgments not be reported against those consumers. It also must refund at least $50 million to customers who have already paid up. The refunds are for amounts that the customers were told to pay above what they owed when the debt was referred to litigation, plus 25 percent of the excess...
ALL I CAN SAY IS: "WOW!"
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Weekend Economists ask the Question of the Year (so far) July 11-12 2015 [View all]
MattSh
Jul 2015
OP
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#2
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#16
Who really thinks Greece should stay with the Euro? Only the Greek people, with debt restructure...
mother earth
Jul 2015
#24
"A Hostage Situation": Greece Yields to Austerity Demands Just Days After Historic "No" Vote
mother earth
Jul 2015
#25
From Fri's Dow I'm guessing the 1% is thrilled at Greece's subjugation?
bread_and_roses
Jul 2015
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Tell it, Pepe Escobar! Well done & TY, MattSh, great reading, all of these.
mother earth
Jul 2015
#44
William Hague warns Greece debacle is a 'minor rehearsal' for coming Euro crash | Daily Mail Online
MattSh
Jul 2015
#35
Greek government insider lifts the lid on five months of 'humiliation' and 'blackmail'
MattSh
Jul 2015
#36
Germany won’t spare Greek pain – it has an interest in breaking us | Yanis Varoufakis
MattSh
Jul 2015
#37
Germany enjoys its domination over the working class in their own country & all of the EU...Heiner
mother earth
Jul 2015
#47