Skip to content

JP Morgan Chase Unethical Debt Collection Practices

Michael Agruss

Written and Reviewed by Michael Agruss

  • Managing Partner and Personal Injury Lawyer at Mike Agruss Law.
  • Over 20 years of experience in Personal Injury.
  • Over 8000+ consumer rights cases settled.
  • Graduated from the University of Illinois Chicago School of Law: Juris Doctor, 2004.

JP Morgan Chase Unethical Debt Collection Practices

JP Morgan Chase has finally been outed for its years of abusive and unethical debt collection practices. Linda Almonte, who was employed by Chase as a process specialist (then fired for refusing to send obviously flawed files to collection), filed a whistleblower complaint with the Securities and Exchange Commission in 2010. Almonte’s complaint was recently detailed in American Banker, and its details reveal a widespread policy of shoddy record-keeping and purposeful destruction of information.Chase Corp. made a decision in 2008 to aggressively up their collections activities, and installed new management in their San Antonio operation (which oversaw litigation). Almonte was employed in this branch (and filed a wrongful termination lawsuit after they fired her). Among Almonte’s charges: Chase Bank sold to third party debt buyers hundreds of millions of dollars worth of credit card accounts—when in fact Chase Bank executives knew that many of those accounts had incorrect and overstated balances; Chase Bank executives routinely destroyed information and communications from consumers rather than incorporate that information into the consumer’s credit card file, including bankruptcy notices, powers of attorney, notice of cancellation of auto-pay, proof of payments and letters from debt settlement companies; Chase Bank executives mass-executed thousands of affidavits in support of Chase Banks collection efforts and those Chase Bank executives did not have personal knowledge of the facts set forth in the affidavits.American Banker’s story continues, quoting current and recent employees who confirm that the unscrupulous practices Almonte called out are still very much alive. “We did not verify a single one” of the affidavits attesting to the amounts Chase was about to collect on, says Howard Hardin, who oversaw a team handling tens of thousands of Chase debt files in San Antonio. “We were told [by superiors] ‘We’re in a hurry. Go ahead and sign them.’” The documents Chase’s law firms used to sue people differed from Chase’s own files at a staggering rate, as shown by a routine Chase presentation prepared by Almonte, and later submitted to the Securities and Exchange Commission—some law firms’ records disagreed with Chase’s in 20% of cases sampled, a level far greater what is regarded as acceptable error. And, correspondence from borrowers to the San Antonio facility (bankruptcy notifications, address changes, hardship requests), were dropped on an unmanned desk; this news comes from a 2009 printout from Chase’s troubleshooting log.As in the housing crisis and subsequent prolonged recession, robo-signing is also central to Chase’s bad practices. One of their most prolific affidavit signers was Ruben Alcaraz, who rarely if ever reviewed the bank’s pertinent records (as required by law). In court documents, Alcaraz describes himself as an “officer of the bank” and an “Assistant Treasurer;” high-level Chase management had instructed employees to stop signing documents using such titles around the middle of the last decade, four Chase sources say.If a collection agency has harassed you, you may be entitled to money damages up to $1,000.00, based on the FDCPA, which has been around for almost 35 years. The FDCPA is a federal law that applies to every state. In other words, everyone is protected by the FDCPA. The FDCPA is essentially a laundry list of what debt collectors can and cannot do while collecting a debt, as well as things debt collectors must do while collecting a debt. Plus, the FDCPA has a fee-shift provision. This means, the collection agency pays your attorney’s fees and costs. Founding attorney, Michael Agruss, has settled over 1,500 debt collection harassment cases. We want to help you, too. 

Submitted Comments

Harry
6 years ago
my daughter (27) has a chase / slate credit card.it has a limit of $2,000.00. She began shopping one night that led to a two week spending spree. Here is my issue.... She has a lung condition called cf. She also has severe depression , bipolar, manic behavior. she sees a lot of doctors and is on many meds for it. While she was shopping on line, her card was declined due to she went over her limit. she continued to shop due to her condition, like a medication it made her feel better. She ordered $4,795.00 from a store online in Australia, thinking it was safe, her card was denied. The product came from China and took a month to get here. We now have 34+ packages amd she is in debt almost $6,000.00. She never requested a raise in the limit. They raised it to $10,000! They did not notify her of it to this day. We found out when the statement came. They did not even contact us to find out if the card was stolen due to someone made $4,700. in over seas purchases over a two week period. They are now going after the merchant for the full refund, it is not his fault! China will not take any of it back due to import problems and theft. She is in a pretty bad way over this and I want to hold them responsible for their unethical practices!
Anne
5 years ago
I have a house that I have been trying to Short sell with a legitimate buyer and through my broker. But we are so frustrated in this process. My loan, through Chase was sold to SPS after my husband died. We did a bankruptcy chapt 7 in 2009 with that loan listed. I'm trying to find out what I can do with this issue in my life. Can you help? I have maintained a house in Ca for my daughter and grandson who are both disabled so I'm now in Ca but willing to do what I need to further this situation. I have maintained the utilities and visit there at least once or twice a year. My truck is registered there. I just got into problems with funding 2 houses especially after my husband died in 2013. I'm 70 years old and retired on pension and social security. I've been attending college to see if I could create a new future. Paid taxes this year in Ca. I know there may be a few more details but can't, O yes I did an Oregon Mediation Program in 2016 I believe and was told to sign that I would not sue the mortgage co and was told to do a Deed in Leiu but I wanted to short sale for less impact to my credit. Very confused with all this as I signed because they wanted to move ahead. Then was in a trail offer payment in 2017!
paula
4 years ago
Mr Gerald Obando JP chase Morgan says he got a wire transfer for me for $250,000 changed to cashiers check stole $75 for this now wants $100 to mail 📧 I'm disabled poor single mom $250,000 he wont wire to my bank he uses ny address phone no emails texts everyday $250,000 cashiers check $100 to mail help Geraldo Obando I am Paula thanks I have no money
Michael Agruss
3 years ago
Hi Paula. I would be very hesitant to send any money to anyone that is making these claims. Please contact my office so we can discuss what rights you have under the law. Thanks, Mike
Michael Agruss
3 years ago
Hi Anne. It sounds like you have a few different things going on with your house sale, mediation, and deed in lieu. I will be in contact with you to discuss this further and see what help my law firm can offer. Thanks, Mike
Michael Agruss
3 years ago
Hi Harry. Credit cards do not have to ask for permission to raise credit limits, they can do so at their own discretion. She may have some options due to her mental illnesses, but again, the creditor may or may not wish to offer any assistance. You can definitely give us a call to discuss this matter further. Thanks, Mike

We are listening

We will respond to you at lightning speed. All of your information will be kept confidential.

Form successfully submitted!