From the article:
As they work through a glut of bad loans, companies like American Express, Citigroup and Discover Financial are going to court to recoup their money. But many of the lawsuits rely on erroneous documents, incomplete records and generic testimony from witnesses, according to judges who oversee the cases.
Lenders, the judges said, are churning out lawsuits without regard for accuracy, and improperly collecting debts from consumers. The concerns echo a recent abuse in the foreclosure system, a practice known as robo-signing in which banks produced similar documents for different homeowners and did not review them.
“I would say that roughly 90 percent of the credit card lawsuits are flawed and can’t prove the person owes the debt,” said Noach Dear, a state civil court judge in Brooklyn, who said he presides over as many as 100 such cases a day….
The problem, according to judges, is that credit card companies are not always following the proper legal procedures, even when they have the right to collect money. Certain cases hinge on mass-produced documents because the lenders do not provide proof of the outstanding debts, like the original contract or payment history.
At times, lawsuits include falsified credit card statements, produced years after borrowers supposedly fell behind on their bills.
Court defies Congress, heads to Hawaiian junket | WashingtonExaminer.com.
This weekend, judges, lawyers and staff of the country’s 9th Circuit Court of Appeals will convene in Maui, Hawaii, for a government-funded conference that they refused to cancel despite pressure from Republican lawmakers who balked at the junket’s $1 million price tag.
Two Supreme Court Justices, Samuel Alito and Anthony Kennedy, will attend the three-day event and are scheduled to speak briefly on the conference’s final day. Their mere presence will add tens of thousands of dollars to the conference’s security costs, law enforcement sources told The Washington Examiner.
Ninth Circuit Chief Judge Alex Kozinski recently told Congress it was too late to cancel the event, which was booked two years in advance. Senate aides dispute that claim. After combing through the contract, the aides determined that the court could cancel the event by paying a penalty fee that would save most of the taxpayers’ money.
The conference includes a list of sidelights, including yoga, Zumba dancing and surfing lessons, which court officials say are being underwritten by private funds.
Standard Chartered Plc has agreed to a New York Department of Financial Services demand that the bank hire an outside monitor to ensure compliance with U.S. anti-money laundering laws, according to a person familiar with the matter.
Here is the video: