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SmartCredit.com Consumer Education President John Ulzheimer on allegations American Express, Citigroup and Discover are taking debtors to court to col...
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Some are calling it robo signing -- ducks but this time -- -- your credit card company may be involved.
A new report finds American Express Citigroup and discover or going to court to collect collect debts that is with questionable an incomplete paperwork here with more.
John Alzheimer president of consumer education for Smart credit dot com.
John this -- sounds so familiar it sounds like the robo signing scandal with mortgages but now some people out there including.
-- Brooklyn judge saying that these credit card companies are trying to.
Bring consumers that.
Lawsuits.
-- very little evidence do you believe this story and what do you make of it.
Yeah I I do believe the story -- -- keep in mind that part of what I do.
It is expert witness work for fair debt collection fair credit reporting act types of lawsuits and this is a fairly common issue.
Which is that.
Some debt collectors and collection attorneys and even a credit card issuers and -- are going -- -- debtors.
Without sufficient documentation.
To legally collect that debt now don't get me wrong if you 08.
Lender on my.
He he's -- -- in -- today these consumers the doubts out -- the -- isn't cross the I's dotted does that really matter.
While that -- Yes it does matter and here's why it matters even -- they know the Gallup.
-- -- still processes.
That must be followed remember this is -- -- are those policies that are being violated these are possibly federal statutes.
That are being violated the consumer has the right -- -- contacted.
By a debt collector for example to ask -- to verify that debt that's their right and.
-- what that's not what's going on here that's not what this is about it's not about debt collectors calling you on the phone.
It's about major credit card companies bringing you to court are trying to at least although most consumers don't even show up.
To try to get some kind of recompense for money they are actually owed in most cases -- to be sure and to your point.
Sometimes.
That documentation isn't there and sometimes that -- add up to more than they probably should it I mean -- is full hearing your view.
I I think -- it who's at fault is essentially the lender and here's why Mena and asked the rhetorical question that -- at boarding -- fantasy.
Do you keep copies of all your credit card applications the answer is probably now.
And guess why not if you lenders and so at some point during your relationship up a -- becomes my ward vs jurors as to whether or not.
I actually have this debt with you and allocations -- -- right it's it probably illegitimate debt however the balance might not be exactly correct.
And what I think these lenders are banking on is when they file want what they can't collect the money from the data are so they're suing them.
That is right -- if you can't pay your bill to the credit part of shorts on what if you're gonna -- -- pay 300 dollars an hour to an attorney to fight the lawsuit which means you're gonna lose by default and ordered -- issuer default I pray that Ivins.
Then you then then this whole issue of robo signing -- -- testimony and documentation to.
It -- -- because it's a bailout battle this is the next bailout that's what I'm worried about is that something's gonna come along now and say.
They bailed out the people if you owed the mortgage money and then did the banks had problems with documentation.
Is it going to be a similar.
You know final act so to say here -- I don't think so I think what this does smell like -- This smells like CF TD any.
These these are financial services companies this Consumer Financial Protection Bureau yes and -- -- fall squarely under the purview of the CF TB.
You can con man and write rules.
And one -- -- rules that they may not require state.
Credit card issuers do you get better job of maintaining.
Documentation longer than there actually -- part -- now under laws in the end some states are -- a -- to -- -- prices for two years.
That doesn't make any sense to -- should always had a copy of the consumer's credit application on final.
So that's electronic these days for as long as a relationship continues this is -- -- a great piece of advice for consumers.
If you're being saved by credit card issuer and you know that the amount is wrong or you don't actually LA -- better responder -- -- by default are acting keep everything on the cloud John thanks.
Appreciate your time you bet that.
