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Released: August 20, 2012

Credit card robo redux

Source: New York Times Editorial (Paid Registration)

Each day in Civil Court in Brooklyn, Judge Noach Dear presides over as many as 100 credit card collection cases, a scene repeated day in and day out in courtrooms across the country. The borrowers typically do not show up to defend themselves. Many do not know they are being sued, others are too poor or too intimidated to fight back. The result, in an estimated 95 percent of the cases, is a default judgment in favor of the bank or other debt collectors. But as Jessica Silver-Greenberg reported recently in The Times, many of the suits rely on erroneous documents, faulty records and boilerplate testimony — a pattern that resembles in many respects the “robo signing” scandal of 2010, in which banks filed false court documents in foreclosure cases, depriving homeowners of due process that may have saved their homes.

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