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Lawsuit Over Debt Collection Practices Heads to Court

10 January 2014

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 January 10, 2014
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Lawsuit Over Debt Collection Practices Heads to Court

On behalf of Law Offices of Chad M. Hayward, P.C. posted in Credit Card Debt on Friday, January 10, 2014.

If you’ve struggled with debt, illegal practices threatening you aren’t going to make your situation easier. If you’re being threatened or harassed, a Chicago credit card debt attorney may be able to help you get your debt under control and your creditors off your back. In a recent news story from Jan. 8, Chase Bank, which has branches around the U.S., has been accused of using illegal practices to try to collect outstanding debts. According to the news, the bank now faces a lawsuit in the courts in California.

According to the documents, the bank sought to have the lawsuit dropped, but the California Superior Court of Los Angeles rejected that request. The lawsuit claims that between April 2008 and January 2011, the bank tried to illegally collect debts from around 100,000 borrowers. According to the report, the credit card lender may have pursued lawsuits against consumers who had defaulted on credit card debt without the proper evidence to do so. Additionally, the bank had allegedly used “robo-signing” to move the cases forward more quickly, and this was done without any review. On average, it allowed the company to file 100 suits a day, according to the lawsuit.

The company also allegedly sent letters to the consumers demanding payment, and those letters also allegedly stated that liens or garnishments would be used to collect the funds if the money wasn’t paid back. Now, the state is seeking civil penalties against the company in the amount of $2,500 for each violation of the law, and in cases involving seniors or disabled persons, an additional $2,500.

Source: Inside Arm, “California Lawsuit over Chase’s Debt Collection Practices is Still On” Stephanie Levy, Jan. 08, 2014

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