JPMorgan Chase has been in the news recently. Turns out its own internal audits show an error rate in their filed lawsuits (primarily against credit-card holders) of nine percent.
Matt Taibbi:
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...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:
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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.
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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.
...>snip<...
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.
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A couple notes: the link inside the quote is to the WSJ and behind a paywall. Secondly, don't hold your breath for the OCC- mentioned in the article- to do much in the way of reigning in Chase or any other bank; they are greatly captured by the industry and have no teeth, except of course
to block states from prosecuting predatory lending, among their other infamies.
Oh, and let's see how JPMorgan Chase is doing for its account holders.
Mark Karlin via Truth-Out:
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If you are a working stiff and can squirrel away $250 to put in a Chase "savings account," Chase will pay you 12.5 cents a year (.05% APY at a "standard rate"). Furthermore, if you don't make any transactions, they will charge you $4 a month, meaning that you will be left with $202 at the end of a year, plus your 12.5 cents.
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Surely if you put more into savings, then they will give you a better rate? Why yes:
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...even the premium "Chase Savings Plus" still only gets .15% interest. To break that down, that would equal a $150.00 return on every $100,000 lent to Chase each year.
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Hey, thanks JPMorgan Chase, for providing essential banking services. What would people do without you, other than be less poor, of course?