by ReginaGeorge » Mon Oct 15, 2012 08:12 am
The method of robo-signing, that added much to the country's mortgage dilemma, appears to be making a revival. Credit card corporations are increasingly more often being caught mass-verifying borrowers and then taking them to court, backed with mistaken documents. Article source:
[Link removed per TOU]
New lenders working with robo-signing
On the subject of foreclosures, false legal documents are created when there is robo-signing. This is something [Link removed per TOU] mortgage lenders[/url] got in trouble for in 2010, including B of A and Chase bank. When all was said and done, misled borrowers and their lawyers got $26 billion from the lenders.
Evidently charge card companies did not listen very closely when mortgage lenders got in trouble for robo-signing. The businesses are now taking delinquent borrowers to court and producing documents that suggest robo-signing is taking place. Businesses that are doing this consist of American Express, Citigroup and Discover Financial.
A ton of lawsuits see issue
The New York Times said that such court cases are littered with "erroneous documents, incomplete records and generic testimony from witnesses." One civil court judge in New York estimated that the issue is seen in up to 90 percent of credit card lawsuits.
Some credit card companies are really taking people to court that are paid up on their loans. Others are beefing up balances owed with phony fees and inflated interest charges. In some cases, states the New York Times, even when the loan companies have a legitimate case, they still may not have followed legal procedures for granting the loans.
Fake debts are collected in the courtroom, and that is very comparable to what the mortgage industry did with foreclosure practices.
Attempting to make some money
Adam Levin, co-founder of Credit.com, told ABC that credit card corporations are desperate to make up the income they lost to federal regulations that restricted outrageous fees.
Brian Bromberg is an attorney who pointed out those courts is starting to realize the scams:
"What we're finding more and more is, once you start taking depositions of the people who are signing off on the original documents, they know nothing."
Go to court on [Link removed per TOU]
Daily Finance points out that 95 percent of victims never even show up for court. The lenders end up with a default victory at that point.
If you feel like your collection proceedings are inaccurate or mistaken, get legal help, according to Levin.
Bottom line: do not be afraid to take on card lenders. Often they may be banking on that fear with cases that are very easily punctured.
Sources
New York Times
[Link removed per TOU]
[Link removed per TOU]
New lenders working with robo-signing
On the subject of foreclosures, false legal documents are created when there is robo-signing. This is something [Link removed per TOU] mortgage lenders[/url] got in trouble for in 2010, including B of A and Chase bank. When all was said and done, misled borrowers and their lawyers got $26 billion from the lenders.
Evidently charge card companies did not listen very closely when mortgage lenders got in trouble for robo-signing. The businesses are now taking delinquent borrowers to court and producing documents that suggest robo-signing is taking place. Businesses that are doing this consist of American Express, Citigroup and Discover Financial.
A ton of lawsuits see issue
The New York Times said that such court cases are littered with "erroneous documents, incomplete records and generic testimony from witnesses." One civil court judge in New York estimated that the issue is seen in up to 90 percent of credit card lawsuits.
Some credit card companies are really taking people to court that are paid up on their loans. Others are beefing up balances owed with phony fees and inflated interest charges. In some cases, states the New York Times, even when the loan companies have a legitimate case, they still may not have followed legal procedures for granting the loans.
Fake debts are collected in the courtroom, and that is very comparable to what the mortgage industry did with foreclosure practices.
Attempting to make some money
Adam Levin, co-founder of Credit.com, told ABC that credit card corporations are desperate to make up the income they lost to federal regulations that restricted outrageous fees.
Brian Bromberg is an attorney who pointed out those courts is starting to realize the scams:
"What we're finding more and more is, once you start taking depositions of the people who are signing off on the original documents, they know nothing."
Go to court on [Link removed per TOU]
Daily Finance points out that 95 percent of victims never even show up for court. The lenders end up with a default victory at that point.
If you feel like your collection proceedings are inaccurate or mistaken, get legal help, according to Levin.
Bottom line: do not be afraid to take on card lenders. Often they may be banking on that fear with cases that are very easily punctured.
Sources
New York Times
[Link removed per TOU]
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