California (by way of its attorney general) filed a suit against JP Morgan Chase a couple months ago. The contention on the lawsuit reads that JP Morgan exploited several thousand California customers. To maximize debt collection, JP Morgan Chase designated a taskforce that committed questionable acts to get the job done.
What Did JP Morgan Chase Do?
In essence, what JP Morgan Chase did to customers was pretty dirty: falsifying credit card statements and presenting scattered, irrelevant documents as grounds to collect their loans. With the reasoning that borrowers couldn’t afford to fight back, JP Morgan Chase bullied them in court. As seen on Foley Law PLLC, the immense complexity of the legal system is too much for the average borrower, leading too many being manhandled into unfair terms and unfair court rulings.
How Were Borrowers Tricked
Unsuspecting credit card users didn’t know any better, allowing them to be tricked and taken advantage of. Some elderly couples didn’t even know they were being sued until they were notified of the judgment in their case. Default judgments were placed against those who didn’t attend court. With these default judgments, the courts give credit card lenders the authority to garnish wages (automatically take a portion with the purpose of paying themselves back). Some cases even lead to lenders getting the authority to freeze a borrower’s bank account.
What makes most of the cases terrible is that borrowers didn’t contest the claims. They acknowledged their debts. But that alone didn’t benefit JP Morgan Chase, because the judge would probably institute a slow, steady payback plan. To maximize the recollection of money owed, JP Morgan resorted to dirty tactics. To go along with this fiasco, JP Morgan Chase simultaneously fell under scrutiny in another unrelated field. The company wasn’t truthful about all the costs involved in their electricity provision contracts – leading to clients getting overcharged for the services. JP Morgan Chase subsequently pulled out of the business of providing electricity; they sold the production rights they held over three plants in California.
Surprisingly, the fallout from this whole situation doesn’t have anyone calling for the Chief Executive Officer’s head. The CEO of JP Morgan Chase, Jamie Dimon also serves as co-chairman of the company. The incident ignited a shareholder vote as to whether or not the current position he holds (CEO and co-chairman) should be split.
A big bank like JP Morgan Chase getting hit with the hammer for unlawful practices doesn’t surprise the average citizen. People can learn from the victims taken advantage of by JP Morgan. Make sure you understand all the terms and conditions when agreeing to any sort of loan lest you find yourself hunting down a credit card defense attorney. Carefully read the terms of usage pertaining to your credit card. Read letters received in the mail fully and follow directions to ensure you don’t get a default judgment held against you. The best advice is to keep records of your credit card spending tediously. It may be a pain, but if something similar happens to you as these JP Morgan victims, you can be prepared to defend yourself.
Daniel has the opportunity, as an associate for My Marketing T is to underpin U.S. organizations through visitor posting. He dwells on the West Coast with his spouse and their three little ones, and delights in bookworms checking him out on Google.