Chase slapped for selling zombie debt, illegally robo-signing court documents

https://www.consumeraffairs.com/news/chase-slapped-for-selling-zombie-debt-illegally-robo-signing-court-documents-070815.html

Chase allegedly sold bogus debts to third-party debt buyers — accounts that were inaccurate, settled, discharged in bankruptcy, not owed, or otherwise not collectible. Many of the debt buyers then began hounding consumers in an attempt to collect the non-existent debts…

The order requires Chase to document and confirm debts before selling them to debt buyers or filing collections lawsuits. Chase must also prohibit debt buyers from reselling debt and is barred from selling certain debts. Chase is ordered to permanently stop all attempts to collect, enforce in court, or sell more than 528,000 consumers’ accounts.

Chase will pay at least $50 million in consumer refunds, $136 million in penalties and payments to the CFPB and states, and a $30 million penalty to the Office of the Comptroller of the Currency (OCC) in a related action.

$50 million divided by 528,000 is $94 per consumer.  Not only just another slap on the wrist for big banks, but the consumer is screwed yet again.

The CFPB found that Chase violated the Dodd-Frank Wall Street Reform and Consumer Protection Act’s prohibitions against unfair, deceptive, or abusive acts and practices. Chase sold faulty and false debts to third-party collectors, including accounts with unlawfully obtained judgments, inaccurate balances, and paid-off balances.

Chase also sold debts that were owed by deceased borrowers. Chase also filed misleading debt-collections lawsuits against consumers using robo-signed and illegally sworn statements to obtain false or inaccurate judgments for unverified debts.

6 thoughts on “Chase slapped for selling zombie debt, illegally robo-signing court documents

If you don't comment, I'll just assume you agree with me

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s