Issuers Face Their Own “Foreclosuresque” Legal Crisis

What's Next In Payments®
11:14 AM EDT August 13th, 2012

As an increasing number of debt collection cases end up in court, the proceedings are looking more and more similar to the painful foreclosure settlement scene that included multibillion-dollar settlements paid out by big banks.

American Express and Citigroup are among the issuers who often find themselves relying on “erroneous documents, incomplete records and generic testimony from witnesses,” the New York Times’ Jessica Silver-Greenberg writes, in an environment where some companies are apparently “churning out lawsuits without regard for accuracy, and improperly collecting debts from consumers.”

Noach Dear, a Brooklyn-based state civil court judge, estimates to Silver-Greenberg that “90 percent of the credit card lawsuits are flawed.”

Read the full story here.

Comments
Also by This Author
What's Hot
Mobile Commerce
Levi’s Appoints Walmart exec Marc Rosen as eCommerce Boss
News
Michael’s Data Breach More Wide Ranging Than Initially Thought
Alternative Financial Services
Lending Club Announces New Funding and Acquisition
Mobile Commerce
Sprig Springs Into The Food Delivery War, With A Plan
View All Articles ››
You May Also Like
Company Spotlight
Different mPOS Strokes for Different mPOS Folks
International
Digital River Offers A Sneak Peak At Mobile eCommerce Trends
Mobile Commerce
Trustwave Buys Cenzic To Beef Up App Testing Capability
Breach Round Up
The Heartbleed Bug Effects More Than Just Software…
Mobile Commerce
Levi’s Appoints Walmart exec Marc Rosen as eCommerce Boss
B2B Payments
Why Mark Cuban Invested in e-Procurement
News
Michael’s Data Breach More Wide Ranging Than Initially Thought
View All Articles ››