It’s important you verify the information contained in a debt collection affidavit before you sign it. An affidavit is sworn testimony used to support your debt collection case. As with any signed document, you are “charged” with having read it and if it’s untrue, you run the risk of perjury and more.
Such is the case again with Chase. In 2015, the Federal Trade Commission came down on Chase for robo-signing affidavits. Robo-signing occurs when procedures are not followed and documents are reviewed and signed by people with minimal background in the case. It alleged that Chase robo-signed and submitted affidavits to support credit card lawsuits against consumers with inflated balances, questionable liability, and more. The investigation was settled and Chase was to adhere to an order demanding an end to the practice. But robo-signing wasn’t just happening within Chase. Chase was one of 13 financial institutions censured for robo-signing documents in support of debt collection suits and foreclosure. The banks’ actions harmed many consumers’ credit, and the banks had to pay billions to borrowers.
The order expired a few years ago and now, probably due to the overwhelming number of lawsuits being filed against consumers for delinquent accounts, six senators have renewed the inquiry into Chase’s collection activities.
The inquiry comes as New York’s Consumer Credit Fairness Act comes into effect, offering additional protection for consumers.
It’s for this reason, we recommend making sure the charges demanded from the consumer are valid and not past the revised three year statute of limitations unless tolled. A copy of the underlying contract must not cite any other state or jurisdiction for suit, and your relief should include litigation and not arbitration or mediation.
The affidavit, which will be needed in order for the court to award you judgment by way of summary judgment or on default by the clerk, should state that you have reviewed the books and records of the company and confirmed the indebtedness and that it remains outstanding. If you are the person at the creditor’s company responsible for signing and or processing these affidavits, please do not just sign them as a matter of course. Do your due diligence, especially if your company files a large volume of lawsuits.
Affidavits are an important debt collection practice and facilitate the domestication of judgments from other states and countries. Rather than provide oral testimony stating the facts, affidavits allow for written testimony.
If you would like to learn more about affidavits and their role in debt collection, check out our articles below.
