Summary
When creditors mechanically and automatically certify that credit card debt is real without any documentary evidence, it’s called robo-signing, and the practice is both widespread and controversial
The content on this page is accurate as of the posting date; however, some of our partner offers may have expired. Please review our list of best credit cards, or use our CardMatch™ tool to find cards matched to your needs.
Your credit cards journey is officially underway.
Keep an eye on your inbox—we’ll be sending over your first message soon.
Among those alleged shortcuts was a tactic called “robo-signing,” a practice once rampant in mortgage foreclosures before it was outlawed. Debt lawsuits require signed affidavits from the entity that holds the debt before it can get default judgments and garnish wages, swearing that it has reviewed proper documents and is sure the claim is accurate. However, these reviews are time-consuming — and, JPMorgan Chase, the lawsuit alleges, had employees sign off on thousands of cases without doing the required research.
That glut of cases, according to the suit, “flooded California’s courts with collection lawsuits” against credit borrowers and took advantage of the fact that borrowers “would lack the resources or legal sophistication to call [the bank’s] bluff.”
This case isn’t the first time robo-signing debt lawsuits has been criticized. Courts, regulators and consumer advocates have become increasingly skeptical of robo-signed credit card debt paperwork.
To learn more about how robo-signing works — and how it can harm borrowers — use the interactive graphic below.
See related:Robo-signed collection cases under fire, More infographics
To use the graphic on your site, use the following code:
<center><a href=”https://www.creditcards.com/credit-card-news/infographic-robosigning-credit_card-debt-1701/”><img alt=”CreditCards.com infographic: How robo-signing works” border=”0″ src=”https://www.creditcards.com/credit-card-news/assets/robo-signing-machine.swf” /></a> </center>
Editorial Disclaimer
The editorial content on this page is based solely on the objective assessment of our writers and is not driven by advertising dollars. It has not been provided or commissioned by the credit card issuers. However, we may receive compensation when you click on links to products from our partners.
