JPMorgan drops credit card lawsuits
While many lenders may choose to sue consumers over delinquent and defaulted credit card debt, one of the largest in the U.S. recently dropped more than a thousand such cases.
JPMorgan Chase recently made a move to drop many lawsuits against consumers in California, Florida, Illinois, New Jersey and New York since April, but have not offered the judicial systems an explanation as to why, according to a report from the Wall Street Journal. Some experts see the move by JPMorgan as odd because about 94 percent of cases filed against consumers result in judgments in the lender’s favor.
However, a Florida-based lawyer who regularly handles collections cases for JPMorgan said that the company told him the suits were dropped due to what they called “irregularities” in the associated paperwork, the report said. Some judges also said that documentation in these cases is often questionable, though JPMorgan is not accused of any such problems.
All of the major credit card lenders in the U.S. have seen instances of default and delinquency decline significantly in the last year.