Chase Stops Suing Consumers Over Debt

In a move that will most certainly not be permanent, JPMorgan Chase is reported to have stopped suing consumers over debts.

The American Banker is reporting that almost overnight, suits to collect debts by Chase have nearly stopped.

A rumor exists that the Office of the Comptroller of the Currency is looking into issues surrounding Chase consumer debts. Those actions, if true, may result in actions like we’ve seen over other robo-signing issues.

The American banker article states:

In a sign that Chase acted with urgency, numerous regional collections teams were fired in mid-2011 at the order of the New York bank’s headquarters, according to people familiar with the events.

“Nobody told anybody anything. It was very traumatic,” says a former Chase attorney who asked to remain anonymous because of a nondisclosure agreement. “I think there were investigations by the [Office of the Comptroller of the Currency] and other government entities. If we’re not there, we can’t be interviewed.” – Source

What is not known is if Chase has been or will be selling off these debts to debt buyer for collections and passing the buck on to someone else to deal with.

An interesting turn of events for sure.

Damon Day - Pro Debt Coach

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