Banks Ignore the Bankruptcy Laws

Big Banks continued unlawful actions that only result in “slap on the wrist fines” that in many cases are passed on to the shareholders and/or used as a tax deduction. It seems that Wall Street and the Banksters have not learned a thing. Or have they?

The latest wrinkle in Banksters taking advantage of American citizens is noted in a Crooks and Liars report which detailed an investigation into several Big Banks and their alleged refusal to honor the orders of Bankruptcy judges across the country. Of course, the “usual suspects” have been named in the latest investigations.

“The practice — a subtle but powerful tactic that effectively holds the credit report hostage until borrowers pay — potentially breathes new life into the pools of bad debt that are bought by financial firms.

Now lawyers with the United States Trustee Program, an arm of the Justice Department, are investigating JPMorgan Chase, Bank of America, Citigroup and Synchrony Financial, formerly known as GE Capital Retail Finance, suspecting the banks of violating federal bankruptcy law by ignoring the discharge injunction, say people briefed on the investigations.” Crooks and Liars

What the US Trustee Program is investigating is the alleged practice by the aforementioned target banks of refusing to extinguish the debts that Bankruptcy judges have ordered extinguished and keeping those debts on the debtor’s credit reports. Without the debts being removed from the credit reports, discharged debtors are caught in a never ending process of trying to pay off discharged debts, just to renovate their credit ratings.

Of course, this practice is in direct conflict with our bankruptcy laws, but the law never seems to get in the way of Big Banks….

By Lawrence E. Rafferty – JonathanTurley.org –