There are thousands of lawsuits filed each year that claim an individual has failed to keep up with their credit card payments. Many of these cases resolve quickly, with the lender and debtor coming to terms on how this credit card debt will be paid back. However, there are other cases that may have crossed the line. The outcome of an out-of-state lawsuit against J.P. Morgan may potentially affect Michigan residents, as well as many others across the country.
The suit alleges that J.P. Morgan used improper practices in commencing a large number of lawsuits through the use of robo-signing, a phrase that gained notoriety during the foreclosure crisis. Robo-signing occurs when an employee of the bank, or a bank representative, signs a sworn document without properly checking bank records to confirm the facts underlying their statements. This practice has put thousands of credit card debt lawsuits into question.
The California suit also alleges that the bank failed to conceal the personal information of debtors in their filings, which could potentially expose them to identity theft. It has been estimated that thousands of residents could be impacted. It is unclear whether other states are looking into this practice as well to see if they may have a claim against J.P. Morgan.
Credit card debt is a serious issue for many Michigan residents. With high interest rates, many may feel that there is nothing they can do to get back on top of this mounting problem. However, by looking at all the options, there may be a way to navigate through this debt to a more prosperous future.
Source: CNN Money, “California accuses JPMorgan of fraud in credit-card-debt collection,” May 9, 2013