Chase Halts Sales of Credit Card Debt to Debt Buyers» Print This Page
- July 2, 2013
- Debt Collection Lawsuit Defense
Based on our experience in defending credit card lawsuits, Chase Bank (now known as JP Morgan Chase) has all but stopped filing credit card lawsuits here in Florida. However, recent reporting indicates that Chase Bank has now stopped selling its portfolios of credit card debt to debt buyers. Selling such credit card debts by original creditors to debt buyers is a huge business in this country: debt buyers purchase these “portfolios” of charged-off credit cards for pennies on the dollar and squeeze consumers to try to get them to pay the full amount charged off (or more). You can click here for an article that describes the difference between original creditors and debt buyers as it relates to Florida credit card lawsuits.
The news story in the American Banker notes that Chase Bank has virtually stopped selling credit card debt because it is concerned over an expected government crackdown over its credit card debt collection practices. For example, I have already written about a lawsuit filed by the California Attorney General against Chase over its use of procedural shortcuts and illegal “robo-signing” in its credit card lawsuits. This also affects credit card lawsuits filed by debt buyers who bought accounts from Chase and have now filed lawsuits over the credit card debt. However, we still occasionally see such lawsuits, such as the one we just successfully defended against Midland Funding LLC who had bought the credit card account from Chase Bank USA, N.A.
Here’s what it means to you: if you have been sued by Chase Bank, or by any debt buyer who bought the credit card account from Chase Bank, there are additional potential defenses that we can assert for you in defending your credit card lawsuit.