Debt collectors practice abusive tactics everyday, but what JPMorgan/Chase did in California got them in serious trouble with the State Attorney General!

CNBC published an article by Jessica Silver-Greenberg in the New York Times about how JPMorgan/Chase had been practicing abusive debt collection practices on thousands of creditors between 2008 and 2011.

JPMorgan/Chase would file thousands of lawsuits each month (469 on one day!) in an effort to clollect debt. They were accused of taking shortcuts such as relying on court documents that had not been reviewed for accuracy.

Anyone who receives a collection letter or summons has the right to have that debt "validated".

In other words, JPMorgan/Chase was not doing this and therefore were charged with "unlawful practices", according to the article. Debt Collectors must obey the law or more specifically the Fair Debt Collection Practices Act (FDCPA) or be subject to criminal charges.

Kamala D. Harris, the Attorney General of California, is quoted in the article that JPMorgan/Chase:

• "took shortcuts like relying on court documents that were not reviewed for accuracy"
• "To maintain this breakneck pace, JPMorgan relied on unlawful practices."
• "...assembled a debt collection mill that abuses the California judicial process"
• "At nearly every stage of the collection process, the bank cut corners in the name of speed, cost savings and their own convenience."

Illegal debt collection practices is nothing new!

We've been helping people repay and/or settle debts for many years and have seen abusive debt collection practices before, but never on this large of scale as the article states! The FDCPA can protect you from such abuse, but you need to KNOW YOUR RIGHTS!

Of all the charges outlined in the article, the worst was what is called "sewer service"!

What is Sewer Service?

In traditional and legal debt collection, the process should go as follows:

• The collector files a CLAIM in your county's court house.

• You are supposed to get a SUMMONS delivered in person.

• You have 20-30 days (depending on your state law) to dispute the debt.

• Since most people either owe the debt or ignore the summons, the creditor/plaintiff is awarded a DEFAULT JUDGMENT.

With the judgment (awarded by default), the creditor now can seek payment by Wage Garnishment or Bank Levy.

What JPMorgan/Chase was accused of doing was claiming to have served the debtor with a summons when in fact they had not!  This is SEWER SERVICE!

I'm glad California has taken (or will be taking) JPMorgan/Chase to court! More state attorneys general should do the same!

In the meantime, if you feel that you have been the victim of abusive or illegal debt collection practices, contact your state's attorney general and file a complaint.

If you would like to read the entire article by Ms. Silver-Greenberg, CLICK HERE.