JPMorgan Chase bank and Dallas-based debt collector Real Time Resolutions collaboratively agreed to settle a class action case for $4.3 million. This settlement will compensate and reimburse thousands of individuals who were on the receiving end of allegedly misleading debt collection efforts from both entities.

Carmen Terry is the lead plaintiff in the case and was one of the thousands who received the deceptive letters. He alleges that JPMorgan Chase Bank, N.A., commonly known as Chase, violated the Fair Debt Collections Practices Act (FDCPA) by pursuing collection on residential mortgage loans that they owned or serviced. This is after Chase lifted the lien on the property that secured the loan.

Chase denied all allegations and agreed to settle the matter out of court to avoid litigation. The class action settlement members were separated into three tranches:

  • Tranche 1: Those who made one or more “challenged payments” on a purchase money mortgage during the class period.
  • Tranche 2: Those who made one or more “challenged payments” during the class period, but not on a purchase money mortgage.
  • Tranche 3: Those who received the collection letters, but did not make any payments.

Class members had until December 6, 2017 to opt-out of receiving the agreed settlement. The final approval hearing is set for January 19, 2018 and class members do not need to attend to receive their portion of the settlement.

FDCPA Violations

Although neither Chase or Real Time Resolutions admitted to the charges presented against them, the allegations had enough merit to warrant such a substantial settlement. Banks and collection companies often violate the rights of debtors and in this case, the defendants pursued payments on debts that individuals did not owe. To avoid a similar situation, it is essential that you ensure the validity of all payment requests, even if they do come from authentic sources. Common FDCPA violations include:

  • Suing for a time-barred debt
  • Calling multiple times a day
  • Exaggerating the debt amount
  • Failing to disclose identity
  • Threatening with jail time
  • Using aggressive language
  • Calling using an automated dialing system

The Florida FDCPA and TCPA attorneys at The Law Offices of Jibrael S. Hindi can serve as your legal representation against unrelenting debt collectors and creditors. We can take a detailed look into their calls, emails, letters, and any other means of communication for FDCPA violations to help you retrieve the maximum compensation available. Contact us today at 1-844-JIBRAEL for a free case evaluation.

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