JPMorgan recently came to a settlement regarding its credit card debt collection practices. Even though some consumers may receive restitution as a result, it could be too late for some New Jersey residents whose credit has been ruined by illegal debt collection practices. For them, filing for Chapter 7 bankruptcy could put a stop to any further damage and provide a fresh start financially.
Despite the protestations of many consumers, JPMorgan continued to attempt to collect debts that did not even belong to the parties being harassed. Even if the company had the right party, the amount was often incorrect or not collectible. During the course of such debt collection efforts, adverse reports were sent to the credit bureaus. In some cases, court judgments were obtained with false or bad information.
In any case, these efforts marred the efforts of millions of consumers to buy homes, get certain jobs or obtain credit. Even if the damage is repaired, it could be too late for many people. It will be impossible to get back those missed opportunities. For others, their issues with JPMorgan only touched the surface.
Being the victim of the bad collection activities of JPMorgan may have only been one instance in a string of debt collection efforts by other creditors. New Jersey residents who are overwhelmed by debt may turn to Chapter 7 bankruptcy in order to find relief from their current financial situation. When the proceedings are over, the filer may have a fresh financial start upon which to build a new financial future.
Source: USA Today, "JPMorgan to pay $136M settlement of credit card probes", Kevin McCoy, July 8, 2015