Credit card companies criticized for debt collection process

Credit card swipe
In this Nov. 2, 2009 file photo, a customer swipes a MasterCard debit card through a machine while checking-out at a shop in Seattle.
AP Photo/Elaine Thompson, file

In the foreclosure industry a practice known as "robo-signing" -- using fake signatures to speed the process -- led to a $25 billion settlement between five of the biggest banks and 40 states. The lawsuit claimed that these banks were engaging in unfair and abusive foreclosure practices.

Now, a new practice called "robo-testimony" is coming under fire. As credit card companies try to recoup unpaid bills, a New York Times report says "many of the lawsuits rely on erroneous documents, incomplete records and generic testimony from witnesses."

Consumer protection expert Peter Holland joins The Daily Circuit to discuss this practice and what's being done about it.

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