A Return to Robo-Signing: JPMorgan Chase Has Unleashed a Lawsuit Blitz on Credit Card Customers
After a nearly decade-long pause, Chase has resumed suing indebted customers. The bank is back to its old ways, say consumer lawyers.
This is some excellent journalism and brings about questions of morality re: ethics and our legal system.
Chase was ordered to stop the predatory and illegal practice of filing unsubstantiated lawsuits until 2020 (first question: why only order them to stop it for a limited time?) and they immediately went back to filing lawsuits right after that. Even if it doesn’t automatically result in a judgement of bad faith, it should lead to immediate investigation right? Or at least they should be required to get their new process certified before being allowed to do it again?
“Before the robo-signing scandal a decade ago, Chase recovered about a billion dollars a year with its credit card collections business, according to the CFPB. Why would Chase stop suing customers for years, forgoing billions of dollars, only to ramp up its suits once key provisions of the CFPB settlement had expired?
Craig Cowie thinks he has an answer. “Chase did not think it could make money if it had to sue customers and abide by the CFPB settlement,” said Cowie, who worked as an enforcement attorney at the CFPB during the Obama administration and now teaches at the University of Montana Law School. “That’s the only explanation that makes sense for why the bank would have held back.””Posted on 2022-01-18T16:32:10+0000