Many Florida homeowners still cringe when they hear the word “robo-signing.” This is the process that many mortgage companies used when processing foreclosure claims against delinquent homeowners. Instead of carefully reviewing each case, companies would mass produce documents that did not provide specific information against borrowers.
This practice became widely scorned, and mortgage companies faced new rules when bringing foreclosure suits forward. Now, it seems robo-signing has returned, and this time it could impact many more Floridians.
Many credit card companies have begun to pursue cardholders that have fallen behind on their payments. Shockingly enough, it is believed that many of these suits being brought forward do not have proper data. Companies are not providing the necessary information to show that the person being sued actually owes what the companies say they owe. In some cases, employees from the credit card companies are called to testify, and are only able to give “generic testimony” about the particular debt in question.
The true impact of this practice may not yet be known. Often, the debtors do not show up or contest the amount that the companies say they owe. Judgments are entered against the debtors, and it is possible for credit card companies to impose fees or garnish wages for repayment.
If experiencing financial problems, it is important to act as soon as the problems are noticed. Waiting too long to address the issues will only make these problems worse, and it may eliminate some of the options available.
When bankruptcy is filed, an automatic stay goes into effect that prevents the credit card companies from pursuing a judgment against the debtor. When going through the bankruptcy process, individuals can then take time to learn if their credit card companies are saddling them with additional debt.
Source: ABCnews.go.com “Collectors Robo-Signing for Credit Card Debt Suits” Susanna Kim, August 13, 2012.
