The U.S. Trustee will protect consumer debtors from abusive creditor practices, according to a statement issued by Mark A. Redmiles, Deputy Director of the Executive Office of the United States Trustee.
“The United States Trustee Program (Program) is responsible for protecting the integrity of the bankruptcy system,” he said. This responsibility includes a duty to protect consumer debtors from and to redress violations by, creditors; particularly when the abuse is systemic or multi-jurisdictional. In many cases, misconduct by creditors is best addressed by the private case trustees who review and object to claims, or by debtors’ lawyers who engage in two party disputes. However, where the integrity of the system is at stake, and where the U.S. Trustee is in the best position to protect debtors against abusive practices, we will investigate and we will take appropriate enforcement action.”
Redmiles said, “the Program has recently focused enforcement efforts, and has engaged in litigation, to redress identified practices among mortgage servicing creditors and their attorneys in chapter 13 cases. This includes enforcement activity to redress the filing of false or inaccurate claims, the assessment of unreasonable post-petition charges, and the failure to properly account for post-petition mortgage payments.”
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