Bankruptcy Law, Credit, Foreclosures, Timothy Kingcade Posts

Homeowners in Bankruptcy Receive $50 Million Settlement from JP Morgan Chase over Robo-Signing Allegations

JP Morgan Chase Bank has agreed to pay out over $50 million to more than 25,000 homeowners who are in bankruptcy as part of a settlement with the Dept. of Justice’s U.S. Trustee Program (USTP). The settlement will include cash payments, mortgage loan credits, and loan forgiveness to the homeowners in bankruptcy.

In addition the settlement, Chase has agreed to change its internal operations and have an independent compliance reviewer conduct oversight to ensure that Chase is complying with the terms of the settlement.

Chase acknowledged as part of the settlement that it filed more than 50,000 payment change notices in bankruptcy courts nationwide that were improperly signed by persons who had not checked the notices for accuracy, a practice commonly referred to as “robo-signing.” Chase also acknowledged that it failed to file timely, accurate mortgage payment change notices and provide timely, accurate escrow statements.

More than 25,000 of the notices were signed in the names of either former bank employees or employees who were not part of the accuracy checking process, and the remaining notices were signed by third party vendors on matters that were not related to the accuracy checking process, according to the Department of Justice.

The settlement is a strong warning sign to banks and mortgage servicers that they cannot continue to ignore legal requirements, compromise the integrity of the bankruptcy system and abuse customers who are in financial distress.

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If you are in a financial crisis and are considering filing bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.

Bankruptcy Law, Credit, Timothy Kingcade Posts

JP Morgan Chase faces Class Action Lawsuit

The trend in robosigning has spread from mortgage to credit card debt in a recent lawsuit against JPMorgan Chase Bank. The bank has been accused of filing thousands of false affidavits in court. Miami resident Ruth E. Moya filed the class action lawsuit on March 11 in the Southern District of Florida against the NY-based bank and its credit card division. She is hoping to form a class with other customers who were hit with default judgments after the bank submitted a robosigned affidavit in support of the motion for default.

The lawsuit states that Chase relied upon and/or submitted improper, incorrect and fraudulent affidavits attesting to the alleged cardholders’ debts. These affidavits were executed by Chase employees, often thousands at a time, without the employee reviewing or verifying the information attested to in the affidavits. The lawsuit also claims the affidavits were notarized en masse by notaries who did not witness the party’s signature. It is alleged that this was done by Chase to obtain rapid default judgments without ensuring the accuracy of the cardholders’ debt. In Roth’s case, the lawsuit alleges that the amount of the default judgment Chase obtained against her was greater than the past due amount listed on her balance statement.

Click here to read more on this story.

If you are in a financial crisis and are considering filing bankruptcy, contact an experienced Miami bankruptcy attorney who can advise you of all of your options. As an experienced CPA as well as a proven bankruptcy lawyer, Timothy Kingcade knows how to help clients take full advantage of the bankruptcy laws to protect their assets and get successful results. Since 1996 Kingcade & Garcia, P.A. has been helping people from all walks of life build a better tomorrow. Our attorneys’ help thousands of people every year take advantage of their rights under bankruptcy protection to restart, rebuild and recover. The day you hire our firm, we will contact your creditors to stop the harassment. You can also find useful consumer information on the Kingcade & Garcia website at www.miamibankruptcy.com.