New report blames “Sewer Service,” “Robosigning,” and lack of legal representation Last month the New Economy Project (NEP), a New York-based non-profit advocacy group, released its report detailing abuses in New York courts that are to blame for overburdening the system and siphoning billions of dollars from the state’s low-income neighborhoods and communities. Chief among…
Federal regulators are widening an investigation into whether the nation’s biggest banks used flawed documents and incomplete records to collect on delinquent credit card debts, according to four people familiar with the probe. The scope of the inquiry is unclear, but those familiar with it say the Office of the Comptroller of the Currency is…
Judgments against unsuspecting consumers for defaulted loans are being churned out by debt collectors like Midland Funding, using robo-signed affidavits of debt as substitutes for properly investigated, properly documented debt. Robo-signing is the mass-production of “sworn” affidavits used to prove outstanding debt in lawsuits against consumers. Most common among large debt collectors and debt buyers,…
Debt buyer Midland Funding LLC agreed to pay Minnesota $500,000 to settle a lawsuit filed last year by Minnesota Attorney General Lori Swanson. The lawsuit accused the company of robo-signing affidavits in collection lawsuits and sometimes targeting the wrong people for payment of debts it bought from banks and credit card companies. Midland Funding, a…
The same problems that plagued the foreclosure process — and prompted a multibillion-dollar settlement with big banks — are now emerging in the debt collection practices of credit card companies. As they work through a glut of bad loans, companies like American Express, Citigroup and Discover Financial are going to court to recoup their money….
In 2008, Portfolio Recovery Associates Inc. was sued for fraud after affidavits were submitted bearing the name of Martha Kunkle, who died in 1995. It appears that Martha Kunkle has come back to life. Last July, lawyers for Portfolio Recovery Associates sought judgment in a lawsuit against a Seattle woman for $2,892.10 in credit-card debt…
The allegations charge JPMorgan with robo-signing, which is the automatic generation of documents such as foreclosure notices without a notary or following the legal process, among other illegal practices.
