Judges Say 95% of Credit Card Lawsuits are Flawed

by San Antonio Attorney

Most of the time, flaws in credit card debt lawsuits go unnoticed, according to judges. Compared to foreclosures, the consumers usually do not make an appearance in court to defend themselves. For that reason, around 95% of cases end in default judgments against the borrowers.

In the midst of the surge in credit card debt lawsuits, JPMorgan Chase is under investigation by the Office of the Comptroller of the Currency (OCC) because a former employee has disclosed that around 23,000 past due accounts had erroneous balances, according to those that have knowledge about the investigation.

Linda Almonte, a former vice president assistant at the company, said in her complaint that she was terminated after notifying her supervisors about the errors in the records.

The OCC, which oversees the biggest banks in the U.S., is also vastly investigating the debt collection activities of the industry, concentrating partly on the paperwork used in the lawsuits.

The Federal Trade Commission (FTC) is seeking to improve the process for collecting credit card debts, home loans and also other kinds of bills. Recently, a report on the consumer litigation system shows that some of the lawsuits filed by credit card issuers and other companies were founded on false or incomplete documentations.

According to the FTC, their chief concern is on cases that are mainly quantity businesses. The paperwork is extremely simplistic, the FTC said.

The lenders contested the information that some of the lawsuits that they have filed include inaccurate and flawed paperwork.

The credit card industry is dealing with similar complaints over practices arising from the mortgage crisis. In the midst of a tremendous increase in foreclosures, the banks were charged by state attorneys general of using flawed documents without investigating them and inappropriately seizing properties. Five large banks ended up agreeing to pay $26 billion in February.


–      Do not hesitate to ask for help if you have been sued for a credit card debt. You have rights, and a San Antonio Lawyer can protect them.

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