On Wednesday, American Banker reported that Chase had halted (or severely curtailed) credit card collections nationwide, firing attorneys and shutting down an operation that had been bringing in hundreds of millions in revenue.
Back in April, reporter Jeff Horwitz notes, the Wall Street Journal reported that some contract attorneys cited “documentation irregularities” for the move.
He then invokes the “R” word:
“Robo-signing, or the high-volume production of signed legal documents, has been a key element of the governmental and media foreclosure reviews. Chase’s current pullback raises at least the possibility that at least some banks may have documentation problems in other business lines.”
Horwitz quotes one anonymous ex-Chase employee that terminations came down fast and without warning:
“Nobody told anybody anything. It was very traumatic…I think there were investigations by the [Office of the Comptroller of the Currency] and other government entities. If we’re not there, we can’t be interviewed.”
Chase has thus far not commented on why it’s halted collections. The OCC also declined to comment, Horwtiz reports.