JP Morgan Chase drops several credit card lawsuits nationwide
JP Morgan Chase made headlines today with notice of dropping several credit card debt-collection laws nationwide per a WSJ article.
JP Morgan declined to give a reason as to why they are dropping the suits at this time. The list of states involved in the credit card cases are short, and yes, Florida made the list. The state list also included: California, Illinois, New Jersey, and New York.
As of March 31, there was an outstanding balance of $45.9 billion in credit cards due to JP Morgan. This included —current and delinquent accounts—for the states listed. JP Morgan is seeking an average of around $1,000 per lawsuit, per the WSJ.
CNN Money Reporter, Colin Barr, took the words right out of my mind in the article - JPMorgan's plastic explosives - Do we have credit card robo-signing scandal on our hands? For the sake of the already overburdened courts, let's hope not.
According to speculation, JP Morgan may have dropped the suits because of "robo-signing" or fraudulent documents. Mitch Granat, debt collection lawyer for JPMorgan, told the WSJ he learned from other lawyers that suits in Florida were abandoned due to “irregularities” in the paperwork used to corroborate the legitimacy of the debt.
Florida is still trying to clean up the foreclosure fiasco involving "robo-signers" and poor legal documentation of necessary documents. Our Foreclosure Defense Team, stays busy fighting foreclosures arguing over documentation and other issues in Palm Beach and Broward Courts on a daily basis.
The WSJ article mentioned an SEC complaint filed by whistleblower and former, AVP, Linda Almonte last year. Although the SEC hasn't responded to the complaint, it could have repercussions for JP Morgan Chase, if they are true. JP Morgan decided to settle the federal court suit with Ms. Almonte, for an undisclosed amount, in April of this year.
The federal court suit, alleges that Ms. Almonte was fired because she informed her boss that a large portion of the 23,000 accounts in a $200 million credit-card debt sale were missing important information for court judgments. On top of that, many of the accounts contained incorrect borrower information. You would think that a "Thank you" would be in order instead of "you are fired" for shedding light on this information. But instead, JP Morgan fired Ms. Almonte, who did the right thing and sued them over this glaring offense.
Our qui tam attorneys see this happening in federal false claims cases involving an employee trying to alert their company about the fraud. Ironically, they end up fired because the company would rather try and cover it up as opposed to rectify the problem immediately.
In the world of JP Morgan, tongues are wagging about this latest news, is there another crisis on the horizon? Did they suddenly get altruistic and decide to grant select credit card debtors a "free pass" on their credit card debt?
Only JP Morgan and their legal team know the answers to the first question. We can answer the second one very easy. No, the debtors will not get a "free pass" and JP Morgan will not forget about the debt. The bank has requested the cases be dismissed without prejudice. In plain English, this means that the bank can refile them later.
In light of the economy, JP Morgan Chase Credit Card debtors, facing pending litigation may have other financial difficulties on their hands, such as bankruptcy, foreclosure, unemployment, medical bills due to an illness or other financial hardships.
As a Florida Bankruptcy and Consumer Defense Law Firm, we know this all too well, since we hear this from many of our clients. If you are facing this dilemma, contact a Florida Bankruptcy and Consumer Defense Attorney to discuss your matter. You may have more options than you know. There are several ways to handle your outstanding consumer debt. Let an expert help you navigate through the process.
A word to JP Morgan and your legal team, all eyes are on you. Including shareholders. For your shareholders, get to the root of problem quickly, and get it out in the open. Remember what happens when someone lies in the beginning only to come back a week later to tell the truth. If you confront it head on, it will be over before you know it. Look at the foreclosure fiasco as a guide. Lying and cover up only makes it worse for all parties concerned, and especially your bottom line. JP Morgan stock closed today at $39.48
Click on the following links to read more on the JP Morgan Chase story
Report: JPMorgan Abandons Slew of Collection Lawsuits - Fox Business
Lender Drops Pursuit of Debt - WSJ
A Whistleblower Triumph — JPMorgan Chase Drops Pursuit Of Millions (Billions?) In Credit Card Debt - Forbes
JPMorgan's plastic explosives - - CNN Money - Fortune
J.P. Morgan Drops More Than 1,000 Credit Card Debt-Collection Lawsuits - National Journal
Brian F. LaBovick, Esq.
Esther Uria LaBovick, Esq.
Mark R. Hanson, Esq.
Joseph R. Fields Jr., Esq.
Marcie Dodson, J.D.
Comments
In fact we have some got relational data in this post regarding the credit card lawsuits which may have such a huge amount of debt that you find you are unable to pay it all off, JP Morgan seems to be chase a in a very systematical manner to the credit card debtors.
Posted by: joewatkins29 | August 25, 2011 11:07 PM