America's appetite for borrowing money bloats U.S. consumer debt to a record high almost every month. As of September 2006, the tab stood at $2 trillion and was spurting at an annual rate of 10 percent. Through good times and bad, spending tomorrow's dollars today never goes out of fashion.
But all that borrowing produces a lot of financial heartburn. Every year, banks, retailers and other consumer lenders write off more than $70 billion in uncollectible debt, mostly hopelessly overdue credit-card balances. From there, the debts are bundled for auction and purchased by companies that pay next to nothing for the opportunity to take one more shot at collecting from debtors.
It is through that process that about $9 billion in secondhand debt has landed in the offices of third party debt collectors.
If you see "charge off" on the account they are trying to collect on your credit report it is illegal for these debt collectors to collect one penny. The original creditor took the bad debt as a loss when they filed their income tax and got a credit benefit from the IRS. See: Bad Debt Expense and Allowance for Bad Debt
A decade ago, few creditors tried to collect on old accounts, figuring it wasn't worth the effort.
Today, however, collecting on old debts is a rapidly expanding industry. Aggressive companies can buy charged-off credit card accounts from the original lenders for pennies on the dollar or less. Then, they use credit-scoring and other new technologies to identify which debtors are most likely to pay. The players in this "junk debt" market range from fly-by-night outfits to well-established companies funded by Wall Street investors.
It's a business that's exploded in recent years as collectors discover gold in old bills. Debt buyers are expected to snap up $110 billion in face value of delinquent debt this year, said Paul Legrady, director of research for Kaulkin Ginsberg, a company that advises the debt collection industry. That's twice what was purchased in 2000.
It may not be your debt, but it could be your problem. Collection agencies are bullying blameless consumers into paying debts they never owed. Sleazy
These debt collectors and attorneys have demonstrated they care only about money. Consumer rights and obeying the law are not as important as getting paid. I consider them disgusting law-breakers who deserve to feel the full wrath of the laws enacted to protect you. Use the Free Cease-Communication letter to stop the rude harassment and then contact us for assistance in dealing with them. You do not owe them one penny. Tate and Kirlin Associates
If you are receiving debt collector letters or if you are you being sued by MBF Leasing LLC, you may have a defense the lawsuit and/or a claim against them. Use the Free Cease-Communication letter to stop the rude harassment and then contact us for assistance in dealing with them. You may not owe them one penny. See: MBF Leasing LLC Legal Defense.
Here you will find ingenious tricks and traps that can be used by you to win your case against the debt collectors. Debt Collectors
A federal statute known as the Fair Debt Collection Practices Act (often called the "FDCPA") gives you specific legal rights to sue debt collectors who unlawfully threaten, berate, intimidate or harass you; call you during odd hours, make false representations about the debt or their intentions, or otherwise act in ways proscribed by the act (and their are many). Debtors Rights
Most debt collectors are not internal debt collectors at banks or loan companies but third party debt collectors working for collection agencies. It's their job to get results. It may not be your debt, but it could be your problem. Collection agencies are bullying blameless consumers into paying debts they never owed. Stop Debt Collectors. See the article: "Sleazy New Debt Collector Tactics"
The Fair Debt Collection Practices Act (FDCPA), 15 U.S.C.1601 is a federal statute, which regulates debt collection practices. The statute seeks to protect consumers and prevent abuse in their interaction with debt collectors. This act covers debt collectors and lawyers who do regularly collect debts (Before 1986, lawyers were excluded). CLICK HERE
Maxed Out takes viewers on a journey deep inside the American style of debt, where things seem fine as long as the minimum monthly payment arrives on time. With coverage that spans from small American towns all the way to the White House, the film shows how the modern financial industry really works, explains the true definition of "preferred customer" and tells us why the poor are getting poorer while the rich keep getting richer. Hilarious, shocking and incisive, Maxed Out paints a picture of a national nightmare which is all too real for most of us. Great for college students. Snippets from "Maxed Out"
Let's face it. Much of the troubles we face today are the direct result of
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