June 18, 2013
The Flawed Credit Card Debt Collection Process
Posted on Aug 13, 2012
Credit card companies are increasingly turning to the legal system in their rush to collect money that is owed to them. But, there now exists a very big problem in this litigious-happy practice—nearly all these lawsuits are flawed, at least, said a civil judge who presides over such cases in New York.
“I would say that roughly 90 percent of the credit card lawsuits are flawed and can’t prove the person owes the debt,” said Noach Dear, who sees about 100 such cases every day.
But Dear is not the only judge who sees the problems with these credit card lawsuits.
The problems with the card credit collection process are being compared to the same “robo-signing ones” that the foreclosure process was hit with before a multibillion dollar settlement with big banks was reached.
As Peter Holland, who runs the Consumer Protection Clinic at the University of Maryland’s law school, said: “This is robo-signing redux.”
—Posted by Tracy Bloom.
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