Robo-Signing in Credit Card Debt Collections

by San Antonio Attorney

Similar set of issues that swarmed the home foreclosure process – and resulted in millions of dollars in settlement with major U.S. banks – is budding in the credit card companies’ debt collection practices.

While they deal with a flood of bad debts, companies like Discover Financial, Citigroup, and American Express are filing lawsuits against consumers to collect debt. However, a majority of the lawsuits rely upon insufficient records, invalid documents, and generic witness testimonies, according to court judges who oversee the legal cases.

Credit card companies are filing lawsuits without providing accurate information, and inappropriately collecting debt payments from people. The problem is similar with the abuse of foreclosure system called robo-signing. The banks produce documents for a number of homeowners and they do not check them.

New York State Civil Court Judge Noach Dear estimated that 90% of the credit card cases are problematic and cannot verify that the individual owes the debt. Judge Dear has presided as many as 100 credit card lawsuits in one day.

In 2011, Felicia Tancreto was sued by American Express, claiming that the customer stopped the payments on her $16,000 credit card debt.

Though Ms. Tancreto was late on her repayments, she disputed owing the whole amount, based on court case records. The lawsuit was dismissed by Judge Dear in April because of insufficient proof. The employee of American Express who made the testimony gave a generic statement regarding the company’s method of maintaining its records. The same person provided similar evidence in court for other cases. Judge Dear called it a “robo-testimony.”

American Express defended its practices. American Express spokeswoman Sonya Conway said they highly disagree with the comments made by the judge. They have procedures that make sure they provide accurate testimonies and affidavits to the courts, she said.


–   San Antonio Lawyers can defend you if you have been sued by your credit card company or a debt collection agency in Texas. They can help defeat credit card lawsuits and help you get out from under devastating debt.

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