Major Credit Card Bank Stops All Credit Card Lawsuits

In late January 2012 reported JPMorgan Chase & Co. has stopped filing lawsuits around the country to collect credit card debt.

The American Banker reported on Jan. 10, 2012 Chase had shut down a national collections operations responsible for hundreds of millions of dollars in monthly judgments.

In April 2011 the Wall Street Journal first reported that Chase had stopped filing credit card debt lawsuits in Dade County, Florida.

This Financial News Network videoclip also reports; JP Morgan Drops Pursuit of Many Delinquent Credit Card Accounts

CBS News speculates that the homeowner foreclosure illegal robo-signing of documents may also be a problem for bank credit card debt documentation. “In a federal whistle-blower complaint filed last year, a former vice president of JPMorgan, who worked on sales of overdue credit-card loads, alleged the bank’s employees robo-signed paperwork used to see legal judgments against card users.

According to the American Banker story, a Chase collection attorney, who was fired with many other in-house debt collectors, speculated that fired employees could not testify when the Office of the Comptroller of the Currency investigated possible fraudulent documentation of debts at Chase.

In December of 2013 The Wall Street Journal reported more legal problems for Chase related to their past robo-signing practices. According to the Journal, “[The bank and the law firm] had no intention of actually litigating cases they filed, and either dismissed or failed to prosecute cases in which a consumer filed an answer denying the allegations.”

In the past few years fraudulent documentation of credit card debt by junk debt buyers and their collection attorneys for the purposes of winning court judgments against credit card debtors has been brought to light by the Wall Street Journal, Baltimore Sun and other publications. The Journal and the Minnesota Attorney General reported it was the business plan of Encore Capital Group to final credit card debt lawsuits in large numbers and wait for most debtors to default, doing nothing further and providing no documentation to any debtors who answered their summonses.

The New York Times reported in April 2010 that debt collection attorneys expect a large number of people to default and not appear to defend themselves in a debt collection lawsuits.

A few years ago most courts gave debt collection attorneys the run of the court to collect credit card debt from “guilty” debtors. Today, it is a different story, “guilty” credit card debtors can win or see their lawsuits discontinued by demanding debt collection attorneys prove they owe the alleged debt with proper documentation.

You can read more of my posts on credit card lawsuit defense or consult my program for the proper way to demand documentation of an alleged debt when answering a credit card lawsuit or for how to find the right attorney, experienced in beating these “no-doc” lawsuits and able to do that for you at a reasonable fee.


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