Robo-Signing: A Symptom of a Broken System

Why robo-signing? Because there is no creditor to sign. There is no unpaid loan account on the ledger of any real company. What exists are payment histories, not creditor disbursements. “Servicers” don’t send money to lenders because there are no unpaid accounts. Everyone has already been paid — many times over — through the layered sale of securities, which generated proceeds far greater than the original “loan” given to the consumer.

Hat tip to “Anon.”

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Senate Democrats Call Out JPMorgan Chase

American Banker article by Jon Prior, February 7, 2022

Six Senate Democrats are pressing JPMorgan Chase over its credit card debt collection practices, raising concerns that the bank has resumed robo-signing lawsuits against delinquent customers.

In a letter to CEO Jamie Dimon, the lawmakers warned that if true, the practice could affect tens of millions of customers. Robo-signing refers to the mass production of legal documents with fake or duplicated signatures — a practice that first gained notoriety during the 2008 foreclosure crisis.

Background:

• In 2015, the CFPB hit JPMorgan with a consent order after uncovering robo-signing in its credit card business.

• The order expired in 2020, but recent reports from ProPublica and The Capitol Forum suggest the bank may have quietly resumed the practice.

• Lawmakers are now demanding answers about the number of lawsuits filed, how accounts are reviewed before litigation, and how Chase ensures its practices don’t disproportionately harm consumers of color.

Why It Matters:

• Robo-signed suits can result in wage garnishments for debts that may not even exist.

• Errors can damage credit scores, block access to housing, jobs, and affordable credit.

• History shows that these practices hit communities of color hardest.

Sen. Sherrod Brown (D-OH), along with Senators Warren, Menendez, Smith, Van Hollen, and Warnock, made it clear: Chase should not be using robo-signing — in debt collection or in any other area.

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The Bigger Picture

Robo-signing exists because there’s no real creditor left to sign. The entire “loan” market has been reduced to a securitization scheme where the paper is fabricated to simulate transactions that never happened. Consumers are blamed for default, while banks and servicers profit from manufactured documents.

The Senate inquiry into Chase is just one more reminder: this isn’t about mistakes — it’s about a system designed to conceal the truth.

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Posted in Corruption, Fabrication of documents |