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JPM Chase Quietly Halts Suits Over Consumer Debts


Patz
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Per article in AMERICAN BANKER:

"JPMorgan Chase & Co. has quietly ceased filing lawsuits to collect consumer debts around the nation, dismissing in-house attorneys and virtually shutting down a collections machine that as recently as nine months ago was racking up hundreds of millions of dollars in monthly judgments.

A sampling of court records in the major cities in five states shows that Chase collection suits have virtually disappeared. In a sixth state, Illinois, contract attorneys continue to file small-dollar cases, though at a reduced rate.

It is unclear whether Chase has stopped pursuing collection on many claims nationwide, or if intends to pursue the debts in some other fashion. The bank has not explained its apparent moratorium and declined comment.

Chase's halt does, however, follow scattered defeats in state courts and a whistle-blower's allegation that it falsely overstated the balances of thousands of delinquent accounts it sold to a third party. Former Chase employees and debt collection experts insist that the bank would not have abruptly retreated from its collections efforts in the absence of trouble........"

Read the entire article here:

JPM Chase Quietly Halts Suits Over Consumer Debts - American Banker Article

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What a shame. I guess they got their butt handed to them too many times. Hey, everybody with an active account, transfer all your balances to Chase! It's our duty to help them out. Probably though, they will just sell this stuff off and wash their hands of it. JDBs beware, we are watching you.

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