We’re clearly still seeing the impact of the housing crash that in large part precipitated the so-called Great Recession (only history will tell whether or not we actually call it “the Great Recession”). This time, as Kevin Lessmiller with Courthouse News Service reports, it’s allegations against Chase Bank involving thousands of default judgments against people struggling with debt.
These judgments, as a class action against Chase asserts, were “illegally won” through what’s known as robo-signing.
Robo-signing, which is largely associated with home foreclosures, is the process of signing official court documents on hundreds of lawsuits (or more) without bothering to check whether the allegations – or even the names of the defendants – are correct.
Along with robo-signing, there’s robo-suing, where debt collectors bring hundreds or thousands of lawsuits to court without bothering to ensure the accuracy of what’s being alleged against people.
An article last year in the Christian Science Monitor describes how robo-suing is a thing: “[T]he robo-signers, signing hundreds or thousands of documents a day, don’t take the time to check whether the people they’re suing really owe those debts.”
It sounds exactly like what Chase is alleged to have done. Lessmiller quotes a portion of the complaint against Chase: “Chase could have easily put policies and procedures into place that complied with its obligations under the law, but instead, in order to maximize its revenues, Chase engaged in systematic fraud and made a mockery of our legal system.”
Read the article:
Chase Faces Class Action Suit Involving Unfair Debt Collection