Posted on 11/29/2016 4:34:07 PM PST by pissant
Buying data is not the same as buying the debt. Junk Debt can be collected even when written off by the original lender.
But there are all kinds of ways to fight it and rules that must be followed.
The sad thing you will see is people who think they paid it off but didn’t do something right with the current junk debt buyer..and they get sued when the junk debt is sold to the next junk debt buyer.
The best thing to do in some cases is lie low and hope the statute of limitations runs out before they actually file suit.
Junk Debt buyers really traumatize people with their antics.
Btw, here is one more aspect. There are firms that buy bankruptcy debt. One of the big firms that does this is a Ecast...which is part of Bear Sterns.
Buying bad debt is a huge business.
One more thing on junk debt. That are rules in place whereby the original lender must charge off your account after a certain amount of time. Depends on the type of lender we are talking about but this is a general rule.
So even if you want to pay the original lender - you can’t. They most likely sold that charged off debt and will refer you to the junk debt collector.
What I find most noteworthy is his age, 78.
That line needed a few revisions....
Junk Debt can be collected even when written off by the original lender.
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The trouble is in my instance they paid 2.7% on the dollar but wanted to collect 100%+expenses when legally they are only entitled to collect the exact amount they paid .. their actual damages.. the 2.7% ... The original lender has already received tax benefits for the written off debt.
Wilbur Ross is scum. He does not follow laws unless forced to... he has shown that repeatedly by how he has organized and run many of his businesses.
So even if you want to pay the original lender - you can’t. They most likely sold that charged off debt and will refer you to the junk debt collector.
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Logically you cannot buy something that has been legally declared to have a “$0.00” value and them claim that it has a value greater than $0.00 “just because” , you knew what you are buying and since the actual supporting documents are never conveyed you are buying a list of names and numbers that is unenforceable if challenged... it is a business based wholly on coercion and fraudulent misrepresentation and fraud lawsuits where there is no actual harm to the plaintiff and no valid documentary evidence to back their claims.
A charged off debt is an accounting procedure. It does not cancel your debt. You still owe the full amount. If a portion of your debt is cancelled...you are suppose to receive a 1099-c and it is taxable income...with certain parameters and exclusions. And yes...a junk debt buyer can receive more than they paid for the debt...but there are many ways to try to combat it...and much of it revolves around paperwork.
That said...if you take out credit ...you owe it...no matter what procedures are in place to deal with all ramifications. Someone takes a loss on the debt you dont pay. You are ripping off the creditor...within the legal system.
Btw, claiming one person’s experience in dealing with debit collection in a court case is just how it is everywhere..is not correct whatsover.
It depends on your circuit..and the day of the month and what has just come down within the court system.
For example
A time barred debt can still be collected. (but you don’t have to pay it if you know that it is time barred). Just how the Junk Buyer can do it will depend on your Circuit.
Paul Ryan’s state just had a Republican Governor open the doors to Zombie Debt
http://wisconsinwatch.org/2016/04/controversial-debt-buyers-get-a-break-under-new-wisconsin-law/
“Born said in a press release after the Assembly passed his bill in November that the legislation “closes a loophole that has been exploited by bad actors to avoid paying debts.”
You cannot get the benefit of charging off debt and then sell the debt as if it still exists.
The purchaser owns it at whatever his cost basis is... nothing more..
If they want to collect 100% of face when they paid 2.7% of face they need to have had the debt ASSIGNED to them ... and it must be on the books and not charged off by the seller. The seller must take that 97.2% bath,, and they lose all collection rights.
You can’t have 2 separate entities profit from one debt and both claim 100% of the face value... That is fraudulent ... That is what junk debt buyers do on a regular basis... and it is illegal but just not challenged. When challenged they always back down and slink away.
That said...if you take out credit ...you owe it...
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Stolen card number, Didn’t owe anybody anything ... useless custserv supposedly took care of it years prior..
Just not true. Give me the jurisdiction because I don’t believe it.
It may be a fact specific case but in general, the debt can be charged off and full amount owed.
I need to see the laws in the Jurisdiction to believe it.
Here is a general statement from a legal website
http://www.nolo.com/legal-encyclopedia/what-is-credit-card-debt-write-off.html
I need to see what Jurisdiction says otherwise and under what circumstances that decision was rendered..because it was surely very fact specific
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