Monday, August 13, 2012

Credit card fraud by the banks

Just another example of how big banks believe they are above it all.

Excerpt from an article By:

See more at:   http://news.firedoglake.com/2012/08/13/credit-card-debt-collection-looks-a-lot-like-foreclosure-fraud/

Considering how banks got away with submitted false documents to state courts on mortgage and foreclosure issues, why should we be surprised that they brought the same eye for detail to credit card debt collection? We’ve known this for a while – back in March, JPMorgan Chase was found to have robo-signed documents and shredded others in their credit card debt collection process. Bank of America also kept dodgy records on credit card debt. American Banker did a great series on this. Now this rises to the New York Times’ level, with a takeout on the problems credit card companies are having in courts with bad documentation. Again.
The same problems that plagued the foreclosure process — and prompted a multibillion-dollar settlement with big banks — are now emerging in the debt collection practices of credit card companies.
As they work through a glut of bad loans, companies like American Express, Citigroup and Discover Financial are going to court to recoup their money. But many of the lawsuits rely on erroneous documents, incomplete records and generic testimony from witnesses, according to judges who oversee the cases.
Lenders, the judges said, are churning out lawsuits without regard for accuracy, and improperly collecting debts from consumers. The concerns echo a recent abuse in the foreclosure system, a practice known as robo-signing in which banks produced similar documents for different homeowners and did not review them.
“I would say that roughly 90 percent of the credit card lawsuits are flawed and can’t prove the person owes the debt,” said Noach Dear, a civil court judge in Brooklyn, who said he presided over as many as 100 such cases a day.
I don’t know if we can pinpoint the day when banks and financial firms decided they didn’t have to care anymore about accurate record-keeping. But clearly, that day came long ago, and the companies believe that their political power can inoculate them from any damage caused by lying to courts, stealing from their customers without verifiable information, and basically making a mockery of the longstanding system of debt that goes back to the 1677 Statute of Frauds.

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