Maryland is one of six states in which JPMorgan Chase recently backed off attempts to recover credit card debt. Why? One reason may be that the credit giant might have used fraudulent or otherwise sloppy documents to show that it had the right to collect.

However, the exact reason for JPMorgan's stopping credit claims is unknown, since pursuing the collection of supposed credit card debt is major business for banks. Reportedly, JPMorgan received $1.4 billion last year on defaulted credit card loans. But, throughout the country last year, the company also dropped over 1,000 debt-collection lawsuits.

In addition to backing off trying to collect credit card debt, JPMorgan Chase has even dismissed some of its attorneys and all but stopped a collections effort that was raking in hundreds of millions of dollars in judgments per month. The bank has also fired employees in charge of recovering credit card debt. American Banker, which is a trade publication that focuses on the financial industry, reported that JPMorgan Chase dismissed "numerous regional collections teams."

Anyone who is familiar with the tendencies of banks knows that such measures don't often come about without some form of outside pressure.

While state and federal authorities have yet to focus on JPMorgan Chase in Maryland, legal officials in some states have moved against other debt collectors. Minnesota's attorney general filed a lawsuit against Midland Funding, one of the country's largest debt buyers, accusing the company of filing fraudulent affidavits to recoup credit card debt. Midland was accused of engaging in the now infamous practice of robo-signing, which involves the mass production of signed legal documents. Encore Capital, Midland's parent company, also saw charges from Texas officials, who said that the company used robo-signing to authorize important documents.

In a cut-throat collection climate such as the one described here, Maryland residents who are burdened with credit card debt may want to be sure that they are fully aware of their rights according to Maryland and federal laws. Banks and other creditors can be wily, engaging in a wide range of practices that may or may not be legal. That is why individuals and families with crushing credit card debt should consider all the available options for ensuring a financial rebirth and the chance for a brighter future.

Source: cbsnews.com, "Chase stops suits against credit-card holders," Alain Sherter, Jan. 11, 2012