Lawsuit Against Chase Alleging Illegal Debt Collection Tactics To Continue, Los Angeles Judge Says

Uh oh! Chase is in trouble – again? Still?
JPMorgan Chase Bank is facing charges of illegal and fraudulent tactics in over 100,000 debt collection lawsuits in California.
The lender, which went so far as to halt debt collection lawsuits nationwide last year in the face of allegations of wrongdoing, on January 7, 2014 failed in its bid to get the charges kicked out of court.
Chase argued that California legal authority precluded the In the lawsuit filed by California State Attorney General Kamala Harris. Superior Court Judge Jane L. Johnson in Los Angeles rejected that argument and denied the bank’s request that the lawsuit be thrown out.
According to the lawsuit filed by the State of California in May 2013, Chase engaged in widespread, illegal robo-signing, among other unlawful practices, to commit debt-collection abuses against approximately 100,000 California credit card borrowers over at least a three-year period.
On one day alone during the period in question, Chase filed 469 debt collection lawsuits in California. The Attorney General’s complaint against Chase alleges that, to maintain this pace, Chase employed unlawful practices as shortcuts.
Those shortcuts, the suit alleges, allowed Chase to obtain judgments, garnish wages, and place liens on property from California consumers at a rate that wouldn’t have otherwise been possible.
The state’s lawsuit seeks penalties of $2,500 for each violation of California law as well as an additional $2,500 for each violation against a senior citizen or person with a disability.
The next hearing in this case is scheduled for February 10, and it’s looking as if Chase is buckling down for a long fight.
Chase is no stranger to this sort of problem. In 2013 it entered into a Consent Order with the Office of the Comptroller of the Currency after similar allegations were made against the banking giant. There are other states with similar actions currently pending as well.
See also:

• Chase Whistleblower Suit Reveals Total Disregard For Consumer Protection
• Attorney General Kamala D. Harris Announces Suit Against JPMorgan Chase for Fraudulent and Unlawful Debt-Collection Practices (State of California)
• Consent Order Between Chase and Office of the Comptroller of Currency (OCC Website)
• JPMorgan sued by Mississippi AG over credit card misconduct (Reuters)
• California Lawsuit over Chase’s Debt Collection Practices is Still On (InsideARM)
• JPMorgan Fails To Dismiss California Debt Collection Case (Bloomberg)