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Taibbi writes: "A piece in the Wall Street Journal dug up yet another damning fact about Jamie Dimon's J.P. Morgan Chase. This time, reporters got hold of an internal bank survey of its credit-card collections suits. It turns out that Chase's own survey found that huge numbers of lawsuits filed by the bank contained errors."

JP Morgan Chase CEO Jamie Dimon. (photo: Chris Ratcliffe/Getty Images)
JP Morgan Chase CEO Jamie Dimon. (photo: Chris Ratcliffe/Getty Images)


Credit Card Collections As Fraudulent As Mortgage Collections?

By Matt Taibbi, Rolling Stone

13 July 13

 

piece in the Wall Street Journal dug up yet another damning fact about Jamie Dimon's J.P. Morgan Chase. This time, reporters got hold of an internal bank survey of its credit-card collections suits. It turns out that Chase's own survey found that huge numbers of lawsuits filed by the bank contained errors.

From the article:

The bank studied roughly 1,000 lawsuits and found mistakes in 9% of the cases, said people familiar with the review.

"Any rate above zero is high," said one person familiar with the bank's conversations with regulators.

Thirteen states, as well as the Office of the Comptroller of the Currency, a primary banking regulator, are investigating Chase's insanely sloppy practices in the area of credit-card collections. I've been following this for years thanks to an acquaintance with former Chase VP and whistleblower Linda Almonte, who saw horrific abuses firsthand (I have a chapter on Linda's crazy experiences coming out in my next book). The piece mentions her case:

The case credited with jump-starting investigations into J.P. Morgan's pursuit of credit-card debt was a federal-court lawsuit filed in 2010 by a former J.P. Morgan assistant vice president, Linda Almonte, who alleged that employees known as "attorney liaisons" signed "multiple stacks of affidavits" without looking at the underlying documentation. She alleged that 11,472 out of 23,000 cases in one portfolio, or 50%, were "missing adequate documentation."

I'm glad that the states are finally listening to Linda and that this news is starting to come out. The story is actually far worse than is being described in the papers. It involves allegations of a rather complicated scam tied to secondary sales of credit-card debt - it's easier to sell credit card debt when a judgment has already been obtained, so it seems companies like Chase will go to great lengths, including mass robosigning and other abuses, to obtain judgments.

Chase is the headline target of these new investigations, but most analysts believe the same exact things go on at other banks and credit companies. Once the bigger state lawsuits gain momentum, we're likely to find out, as we did in the foreclosure scandals, that faulty paperwork and perjured/robosigned affidavits pervade the entire consumer debt industry. Somehow I don't think it will result in a $26 billion settlement this time, however.


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+61 # Jackpine 2013-07-13 10:42
The People have only one real champion--Senat or Liz Warren. As for the rest of our supposed guardians, with a notable few exceptions, if they're in elective positions they're bought off through our legalized political bribe system and if they're in appointive positions (such the Attorney General Holder), they seem unwilling to move against institutions that are labelled "too big to fail" and prefer to spend their time chasing whistle-blowers .
 
 
+31 # Joe Bob 2013-07-13 13:13
Bigtime Jerks... If anyone can make a difference it's Elizabeth Warren. Our Heroine. Bold Progressives has a great video of Ms. Warren standing up to a couple of CNBC idiots Lookie here
Watch Warren fight for her new Glass-Steagall Wall Street reform bill -- and join over 100,000 others in fighting by her side for it! http://act.boldprogressives.org/sign/sign_glasssteagall/?akid=14211.129999.IBFcNu&rd=1&source=e5-nonsign-don&t=1
 
 
+8 # HowardMH 2013-07-13 14:40
Whistle-blowers have no money just real credability to make things right.

Wall Street has money for Obama the Wimp.

When are some of these bastards going to jail?
 
 
+46 # WestWinds 2013-07-13 10:58
Why do Americans believe these corporations have a right to do such things? Yes, I understand the media brainwashing that has gone on, but why don't Americans have enough brains, conscience, ethics or morals to recognize when something terribly wrong is being done and just not participate; like the people who were the robo signers. Whatever it is that America is missing, we'd better get it back and pronto. Entropy only ever sluices downward.
 
 
-1 # Saberoff 2013-07-13 15:01
Da, huh?
 
 
+1 # karenvista 2013-07-16 11:02
Quoting WestWinds:
Why do Americans believe these corporations have a right to do such things? Yes, I understand the media brainwashing that has gone on, but why don't Americans have enough brains, conscience, ethics or morals to recognize when something terribly wrong is being done and just not participate; like the people who were the robo signers. Whatever it is that America is missing, we'd better get it back and pronto. Entropy only ever sluices downward.


It's sort of like agreeing to be a hitman. If there is no other way to make money they just rationalize the illegal activity and say they have to take the job to support their families.

It's probably easier if you have an MBA because your ethics have been completely dissolved by then. It is the duty of the business to maximize profits.
 
 
+33 # Rita Walpole Ague 2013-07-13 11:36
Here's a suggestion: save, if at all possible - one quarter to one half of what you earn, pay cash whenever possible, use local credit union for checkwriting, savings, debit cards, etc. If you must have/use a credit card, always pay it off entirely each and every month, even it it means dipping into your above mentioned savings.

And last but certainly not least - always shop first at places like Dollar Tree (saves lots to go there before going into grocery store for things not available at Dollar Tree), and seek a good quality used store for clothing, furniture, appliances, etc..

Being addicted to over spending and getting into debt, in order to make yourself feel 'comfortable' and elegant, is crime waiting to happen.
 
 
+41 # Archie1954 2013-07-13 11:42
The American government and the DOJ have been actually ignoring the law now for a decade or more. They act as if they are above it and that banks are above it. You may ask why there are never any suits or criminal cases brought against major banks when they have been acting illegally for many years. I would like to know the answer to that question.
 
 
+18 # Cougar27 2013-07-13 12:36
Archie,

Ever hear of bribes . . . uh . . . I mean humongous campaign donations. The ones that keep the pols -- from Obama on down (okay, "up" if you insist) -- in their cushy offices. All they have to do is continue violating their oaths of office while constantly kissing the keisters of corporate America.

Yeah, I know: it's a dirty job, but someone has to do it.
 
 
+8 # tinkertoodle 2013-07-13 12:18
IT'S VERY SIMPLE Money talks and government
Lawmakers aren't stupid enough
To bite the hand that feeds them. Would you go
after someone who lines your pocket with hundreds of thousands of dollars?
 
 
+8 # tedrey 2013-07-13 16:13
I wouldn't accept the money in the first place. It's not that they're not stupid; they're not honest. Recognize the difference.
 
 
0 # karenvista 2013-07-16 11:07
Quoting tedrey:
I wouldn't accept the money in the first place. It's not that they're not stupid; they're not honest. Recognize the difference.


Or as I say, "We knew they were whores. We just didn't know what cheap whores they are."

It's amazing but I've heard of congressmen changing their votes for a $15,000. donation. Heck, we could get together and buy a couple of congressmen for ourselves!
 
 
+3 # RobertMStahl 2013-07-13 13:00
Doesn't all this stuff you report on rest on the historical record of gold and silver price fixing reported by GATA, particularly silver? Paul Craig Roberts may have a larger paint brush stroke, for what it is worth. But, here is lesson number one:

http://www.silverseek.com/article/gatas-bill-murphy-chris-powell-call-out-gold-and-silver-market-manipulation-conspiracy-criti
 
 
0 # karenvista 2013-07-16 13:29
RobertMStahl: Thank you for that link. I've been suspicious of the collapse of silver right when it approached $50 an ounce and now is under $20 and then the gold collapse.

This tells us a lot more about how those markets (among others) are being manipulated.

Everything is a scam!
 
 
+13 # amye 2013-07-13 14:19
the credit card scams have been going on for so long that it will be impossible to settle! When i was in my 20's after college, I got credit cards and ran them up! That was 30 years ago and they were scamming me back then. I was paying all those high finance charges! Took care of that real quick! Paid it all off including the high finance charges barely! I have never paid those charges again! I got scammed on my student loans too, but paid it off with those high interest rates again barely. I think I've been lucky with my mortgage but I bet I got scammed there too. Who the hell knows for sure over 30 years and refinancing which is a rip off too. ITS ALL BEEN ONE BIG SCAM!!!!
 
 
+10 # Kootenay Coyote 2013-07-13 17:44
Ms. Almonte: a Bank Whistleblower! Excellent.
 
 
+6 # Bruce Gruber 2013-07-13 19:04
That which defines our personhood is not our existence, but our humanity. The Right Wing of SCOTUS, like the Right Wing of our citizenry demonstrates the Ayn Randian inability to acknowledge the Prophets' admonitions that peace and paradise lie within our hearts through doing and caring for others. The devil is the egoistic self-righteous individualism that goads us to greed and competitive, even subversive, destruction,
The whistle blower, in outing immoral and illegal deeds and plans sacrifices self. Such acts are only traitorous toward evil. They demonstrate goodness ... evil (un)laws notwithstanding .
 
 
+3 # robcarter.vn 2013-07-13 19:41
  Rob Carter says thanks Matt Taibi ~ I have made these comments often to WSJ, RSN, Common Dreams and others including USA Press. But at last a Mkore influential leftist journalist agrees and says it ~ Who knows people may yet see how that 1% and next 5% profited 11% growth 2012. as the US average was 2.7% and 60% of people lost growth, their jobs to automation and consumerism drop with lower disposable incomes on welfare or not. With that extra 11% Growth as profit overflowing their banks they loaned as higher risk capital casino via Credit card players, which didn't create new employment just unaffordable debt for US domestic consumer growth in a recession. People in the main don't know to read JM Keynes, "you don't fix roofs in the rain" & don't go further in debt for unnecessary in a recession. They know not to believe the Politician rhetoric's. Now Mat's exposures from a non-public-read able financial press WSJ the admission by fair or foul the World's second largest Bank after PRC this JPMChase lot by fair or foul will hound you down for their profit growth to grow. Credit in lieu of wages makes consumerism not savings and that's just the way Corporate America want it, they can swindle WTO & TPP for lower import and outsourcing even higher exports, but they find new tricks for the home market domestic consumer. Lend then foreclose, makes great business sense.
 
 
+5 # cordleycoit 2013-07-13 20:44
The banks ought to be shuttered and the barkers jailed for starters.The people regulating ought to have real power to regulate. Anything less useless.
 
 
0 # karenvista 2013-07-16 11:19
Quoting cordleycoit:
The banks ought to be shuttered and the barkers jailed for starters.The people regulating ought to have real power to regulate. Anything less useless.


When Citibank announces that its profits are up 42% for this quarter over last year and other banks follow suit with high profit rate increases there's something crooked going on.

Businesses just don't increase profits by those percentages without extraordinary reasons that would have been so important they would be headlines (if the reasons were legitimate.)

The other problem is- when the government reaches a ridiculously small, no-fault agreement with these usurious crooks the fines (however tiny) won't go back to the victims, it will go to the government that facilitates these thefts.
 
 
+4 # Robbee 2013-07-14 09:13
This comment follows up what Jackpine wrote first above: Robo-signing is wrong but it is not all the crime that Chase is up to: California's attorney general filed suit over Chase robo-signing tens of thousands of Chase credit card customer debt, that's fine for Californians.

What about the one million Chase "fixed-rate for the life of the loan" credit card customers whose loans Chase "called" in 2009? One million customers who, by timely monthly payments, were living up to their end of the contract?

Sure, last year Chase settled their class action for $100 million; what about those who didn't think it was fair to get only $100 apiece for Chase's crimes, so they "opted out" of the settlement, like me?

Time is running out on attorneys general to do something about Chase's 2009 crimes. And this once, it didn't take a whistle-blower, insider to spot and disclose the crime!
 
 
+3 # JSRaleigh 2013-07-14 09:23
Looks like robo-signing was industry standard practice before the housing bubble collapsed and became the foreclosure crisis.
 
 
+4 # lark3650 2013-07-15 06:25
How sad that these guys have nothing else to do with their lives but think of ways to accumulate money for their own self-aggrandise ment by screwing honest, hard-working people. People who do this are parasites...the y absorb everything but produce nothing.
 
 
+1 # DerProfessor 2013-07-15 20:19
The ridiculous aspect of this is the incompetence of the people who hold our credit ratings in their bumbling hands--and a bad credit rating means financial death. I just cancelled a major credit card because of an overcharge. The company sent me the same form letter for three months in a row, claiming they were "looking into the matter." Three months after the cancellation (and three billings later) they issued a credit. Now, every month, I get a credit statement from them. I don't have an account with them. But I have 38 bucks credit.
 
 
0 # karenvista 2013-07-16 11:34
I don't know if this is a new mortgage scam but it was new to me:

A man rang my doorbell yesterday telling me that my mortgage company had sent him to have me fill out some paperwork.

He had my name and address on a form from a company called NationStar Mortgage and said that I had to fill it all out and sign it.

I have never heard of NationStar Mortgage.

I told him that I was not signing anything from a company that was not my mortgage loan servicer and that if his company had been assigned servicing rights I should have been notified by my current servicer, which I have not been.

Needless to say I refused to sign.

I am approaching 70. All I can think is that maybe people are being sent around with fraudulent documents to try to entrap unsuspecting or elderly people who may not remember who is servicing their loan.

Any ideas?
 
 
0 # Beenie 2013-08-12 13:37
I'm so glad you stood up for yourself and refused to be intimidated by this clown.
 

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