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Calif. AG Sues JPMorgan Chase, Alleges 'Robo-signing' and 'Sewer Service' in Credit-card Suits

abajournal.comMay 11, 2013

By Martha Neil

California's attorney general sued one of the nation's biggest banks on Thursday, alleging that JPMorgan Chase & Co.had engaged in widespread "robo-signing" of documents in credit card collection lawsuits.

"To maintain this breakneck pace" while dealing with a glut of litigation against delinquent cardholders, the lending institution created a “debt collection mill that abuses the California judicial process,” AG Kamala Harris said in the Los Angeles Superior Court suit (PDF).

It also alleges that JPMorgan "flooded California's courts with collection lawsuits against defaulted credit card borrowers based on patently insufficient evidence," making a "bet that borrowers would lack the resources or legal sophistication to call bluff," Reuters reports.

In addition to robo-signing, the Harris lawsuit also alleges "sewer service" and filing irregularities, as a press release by the AG's office details.

A spokesman told Reuters that JPMorgan does not wish to comment on the litigation at this time.

The lawsuit by Harris follows widespread earlier claims that lenders throughout the nation engaged in similar "robo-signing" of documents in mortgage foreclosure cases, in order to speed the process and, in some matters, re-create documents that could not be found easily in lender files or, perhaps, at all.

Likewise, abuses similar to those complained of by Harris in the California suit also are taking place in credit-card collection cases in other jurisdictions, some observers say.

“A vast number of the lawsuits are flawed and most of them can’t prove the individual actually owes the debt,” said Noach Dear, a Brooklyn civil court judge who has heard as many as 150 debt collection cases a day tells the New York Times' DealBook blog (reg. req.). Another DealBook post last year also quotes Dear and provides more details.

A lengthy creditcards.com article published by Fox Business discusses a gathering storm of enforcement efforts by federal regulators, state officials and courts nationwide seeking to prevent issuers from prevailing in debt-collection suits that are not adequately grounded.

Back to May 2013 Archive

CFLA was founded by the Nation's Leading Foreclosure Defense Attorneys back in 2007 to serve the Foreclosure Defense Industry and fight pervasive Bank Fraud. Since opening our virtual doors, CFLA has rapidly expanded to become the premier online legal destination for small businesses and consumers. But as the company continues to grow, we're careful to hold true to our original vision. For us, putting the law within reach of millions of people is more than just a novel idea—it's the founding principle, just ask Andrew P. Lehman, J.D.. With convenient locations in Houston and Los Angeles, you can contact Our National Account Specialist and General Manager / Member Damion W. Emholtz at 888-758-2352 for a free Mortgage Fraud Analysis or to obtain samples of work product, including cutting edge Bloomberg Securitization Audits, Litigation Support, Quiet Title Packages, and for more information about our Nationally Accredited and U.S. Department of Education Approved "Mortgage Securitization Analyst Training Certification" Classes (3 days) 24 hours for approved CLE & MCLE Credit (Now Available Online).

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