If you face a debt collection action by a credit card company that you believe was initiated in error, you are not alone. Last month, a frustrated consumer filed a lawsuit against JP Morgan Chase & Co., claiming the company made serious errors as it “robo-processed” her credit card collection action, along with thousands of others.
The case follows a national wave of lawsuits against home mortgage lenders regarding the robo-signing of home foreclosure actions. These lawsuits resulted in billions of dollars in fees, fines and restitution.
Could similar cases regarding error-riddled credit card collection actions be next?
The plaintiff’s complaint contains some clues. In it, Miami resident Ruth Moya claims that the collection lawsuit against her and others contained numerous errors and lacked key information such as past bankruptcies and directly relevant disputes. Morgan Chase’s collection case against Moya allegedly inflated the amount owed, seeking $7,320 for an outstanding balance of $1,140 and $6,967 for an outstanding balance of $761. The complaint claims that Morgan Chase employed just nine employees to process all of its collection actions, and the affidavits signed by the employees “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.”
Though the lawsuit may spell bad news for Morgan Chase, trouble have been brewing for awhile. The bank claims to have already been aware of collections errors and excesses and to have stopped filing collection actions more than three years ago. Still, for consumers facing inaccurate and unfair debt collections against Morgan Chase and other creditors, the damage had been done. A debt collection action can cause stress, harm credit scores, bar consumers from needed credit, and cost consumers time and money, even if they settle with the credit card company or third-party collection agency for pennies on the dollar.
If you have questions regarding a debt collection action in Orange, Riverside, Alameda or anywhere in Southern California, contact Fitzgerald & Campbell. Often, debt collectors lack authorization to pursue a debt, and make key errors, rendering the action illegal and/or invalid. We can investigate your concerns and provide qualified help. To contact us, call (844) 431-3851.