The behemoth that is JP Morgan Chaseâ€™s collection machine has come to a screeching halt. It appears the bank has suddenly stopped filing lawsuits to collect consumer debts.
Without an explanation by Chase, we donâ€™t know if this move is permanent or if the bank plans to pursue indebtedness some other way.
Some within the industry speculate that the halt in consumer suits is due to the greater scrutiny Chaseâ€™s collection strategies have come under lately. Recent troubles in state courts and a whistle-blowerâ€™s claim that Chase falsely overstated the balances of thousands of delinquent accounts threaten to expose less than above-board ways in which the bank allegedly went about collecting debt.
Given how much of the foreclosure crisis the several years was exacerbated by rampant documentation irregularities within the industry, would anyone be surprised if banks like Chase have resorted to similar shoddy practices when pursuing consumer debt?
You can read more about the JP Morgan Chase news over at American Banker.
Please be advised that this article does not constitute legal advice nor does it provide any basis to form an attorney-client relationship. Nothing in this article should be copied without the express permission of the author.
Mr. Hounchell has a law degree from The University of Florida College of Law and he is a principal in The Law Offices Charles A. Hounchell, P.A., in Tampa, Florida. Mr. Hounchell earned his undergraduate degree from The George Washington University in Washington D.C. and he obtained his MBA in International Management from the American Graduate School of International Management (â€œThunderbirdâ€) in Glendale, Arizona.
Mr. Hounchell is a licensed title insurance agent and a real estate agent with Smith and Associates, Inc. http://www.smithandassociates.com/; http://www.livecasanova.com/. He has lived in many different countries, including Spain, Brazil, Argentina, Mexico and Germany and he speaks Spanish and Portuguese. A significant portion of Mr. Hounchellâ€™s law practice is concentrated on Real Estate Law. He can be reached at 813-230-3376 or firstname.lastname@example.org.