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
News
Amazon’s Hip To Be (Like) Square
Acquiring
Rival Baby eCommerce Sites Merge
Europe
Have UK Mobile Payments Taken A Global Lead?
Merchant Innovation
WeChat Launches In-App Commerce
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
Alternative Financial Services
Sears’ Big Data Omnichannel Adventure
Company Spotlight
Who’s The Most Digital Payments Ready?
News
Amazon’s Hip To Be (Like) Square
Commentary
Can Visa Checkout Ignite?
View All Articles ››