Interesting news report that JP Morgan Chase is apparently stopping its collection lawsuits. I have not verified this in Alabama as Chase is not a huge filer of collection lawsuits here but will do so when I have a moment.
Here are some interesting quotes from the excellent article:
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.
We’ll see how this plays out and how various problems with bogus debts affects the banks.