in a yet unexplained move, JP Morgan Chase has been dropping lawsuits against consumers for past debts. The Wall Street Journal is reporting Chase “wouldn’t disclose the number of cases dismissed or the reasons for the move. State judges said the bank has dropped lawsuits targeting borrowers in California, Florida, Illinois, New Jersey and New York since April.” – Source
Mitch Granat, a lawyer who handles debt-collection cases for J.P. Morgan in Palm Beach County, Fla., on a contract basis, said he was told by other lawyers for the bank that the suits in Florida were dropped because of “irregularities” in paperwork used to verify the validity of the credit-card debt being pursued.
Lawyers who represent credit-card borrowers sued by J.P. Morgan said they have never seen the bank throw out so many debt-collection lawsuits at once. The cases were dropped starting in April and as recently as this week, according to lawyers and judges in the five states where J.P. Morgan has dismissed credit-card lawsuits.
Something is going on. The best bet is Chase has found a big problem with the chain of title on a number of debts they are attempting to collect on. Only time will tell if they will sell these debts on the secondary market, try to correct any defects in the accounts or refile again.
These cases may be withdrawn for now but they are not gone forever.