Recently JP Morgan Chase announced that they were giving up $100 million in revenue per quarter, or $400 million a year. Why would they give up something that has been a major source of revenue?
The answer can be summed up in a simple statement made by Michelle Weinberg of the Legal Assistance Foundation of Metropolitan Chicago that recently appeared in American Banker:
“If sloppy record keeping and problems with false affidavits is a problem with mortgages, it’s 100 times bigger in credit card accounts.”
In other words, JP Morgan Chase is scared to death of the next major banking scandal…Robosigning credit cards.
Remember the mortgage robosigning disaster where banks and mortgage companies had their employees sign affidavits and other documents without verifying the information therein? That situation has yet to be resolved but banks are readily willing to pony up between $19-$25 BILLION to settle the whole thing and be released of all liability.
Those are big numbers.
But while there were roughly 1 million people involved in the mortgage crisis, there would be about 10 million consumers involved in a credit card scandal. This could amount to a settlement in the area of about $100 BILLION!
Do you think this will get the Attorney’s General attention? Absolutely!
The first banking scandal will bring them billions of dollars and they will no doubt be on the look out for their next big payday.
JPMorgan Chase & Co. can make any excuse in the book as to why they have quietly stopped filing lawsuits to collect consumer debts, dismissed all in-house collection attorneys and shut down a collections machine that was racking up hundreds of millions of dollars in monthly judgments.
The real reason is they’re scared to death of the tidal wave of changes coming to the collection industry.
We setup our business model from the beginning to take advantage of these coming changes. As unscrupulous collectors leave the industry we will be sitting here with open arms to scoop up the treasure they leave behind.
Join us and take advantage of the best opportunity you will ever see in your lifetime!
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