Several banks have been selling loans to debt buyers. The debt buyers are people who purchase delinquent credit card debt from the bank. Some of the information received by the buyers may be outdated or inaccurate causing many customers to get sued for debt they do not owe. One of the banks has been sued by the California attorney general for abusive debt collection practices.
There may be come unethical practices taking place between the banks and debt buyers. Reportedly, customers are being sued by debt buyers who purchased their debt. In some situations, due to insufficient information, consumers who have already filed bankruptcy or just simply do not owe the debt are facing lawsuits. Two of the banks that allegedly sold loans were Chase and Bank of America. Other banks alleged to be involved in these practices include Wells Fargo and Citigroup.
The California attorney general has filed a lawsuit against Chase for abusive debt-collection practices to a large amount of consumers. Victims may notice that their credit report has errors and lists debts that are not owed. This is also being investigated by the Office of the Comptroller. Victims are urged to contact the Better Business Bureau.
Credit card debt is common for many consumers in today’s economy. There are many debt relief programs that may be an option. When the debt is too high to pay, many California debtors elect to file bankruptcy protection in order to achieve faster and more efficient results. Speaking with a legal representative may be able to further guide a consumer through the process.
Source: kiplinger.com, Collectors May Be Illegally Suing Card Holders, Lisa Gerstnersee, Aug. 29, 2013