Consumer Warrior Podcast | Personal Finance | Debt | Debt Collection Lawsuits | Bankruptcy | FDCPA
About This Show
Are you just dabbling in debt? Then this podcast is not for you. The Consumer Warrior Podcast deals with the big, ugly debt problems like wage garnishment, debt collection lawsuits, foreclosure, bankruptcy, and fighting back against abusive debt collectors.
Most Recent Episode
Chase Bank Ordered to Stop Collecting on 528,000 Accounts – Pay $50 Million to Consumers
Jul 19 15
On July 8, 2015 the Consumer Financial Protection Bureau (CFPB) and 47 states took action against Chase Bank for illegal debt collection activities involving the sale of delinquent accounts to third-party junk debt buyers. After a thorough investigation the CFPB found that Chase Bank had done the following:
Sold Bad Debts to Third-Party Debt Buyers: The investigation found that Chase sold accounts to junk debt buyers that had already been settled, paid in full, discharged in bankruptcy, not owed by the debtor, were part of a repayment plan, or were otherwise unenforceable. The CFPB also found that Chase had sold debts to junk debt buyers that were missing or contained erroneous information such as whether the debt had been paid or the amount owed.
Assisted Third-Party Debt Buyers In Deceptively Collecting Debt: The CFPB also found that Chase sold inaccurate or uncollectable debts to junk debt buyers. It was found that Chase knew that the junk debt buyers would seek to collect on these fault debts, and thus by providing the junk debt buyers with inaccurate information actively participated in deceptive collection activities.
Robo-Signed Affidavits to Sue Consumers for Unverified Debt: Chase filed more than 528,000 debt collection lawsuits against consumers and provided more than 150,000 sworn statements to debt buyers for their collections lawsuits against consumers which were often robo-signed documents. This means that the person signing the affidavit hadn't actually taken the time to verify the information contained within the sworn document - even though they were swearing under penalty of perjury that they had reviewed and verified the information.
Penalties Issued Against Chase by the Consumer Financial Protection Bureau
In response to the illegal conduct by Chase Bank the CFPB came down hard. The Consent Order issued against Chase Bank provided the following:
Chase Bank Must Cease Collecting on 528,000 Accounts: Chase Bank has been ordered to stop collecting on 528,000 consumer accounts that were sent to collections litigation between January 1, 2009 and June 30, 2014. If Chase previously obtained a court judgment Chase must notify the consumer that they will not try and collect or enforce the judgment. Further, Chase is required to contact the three major creditor reporting agencies to request that the judgments not be reported.
Chase Must Pay at Lea