Monkey wrenches for Junk debt buying CA business model
Date: Mon, 06/27/2005 - 12:22
Monkey wrenches for Junk debt buying CA business model
To make a long story short, the OC the JDB CA aquired the alledged account from was listed on the Internet as a 24 carat fraud, the internet also labeled the CA as one of the real low ethics CA's, and it only took one letter sent cmrrr demanding debt validation before the CA slinked off unpaid. But those Turkeys done got me not just angry but deep down mad as in don't get mad--get even. Don't use dirty tricks do it 100% legal.
I tend to be analytical, play chess, and by habit I try to put myself in the other guys shoes to see it from other viewpoints. The whole credit reporting system does fufils a social need--especially in the US where their are no debtors prisons.
But in aquiring the needed crash course on how the system works on the internet, what disturbed me most was the recent rise of business model of the junk debt buying collection agency. That model is simply-------
Buy cheap and hence not very valid debt. Debt no reputable collection agency would touch and work this debt very hard. Keep operating costs down so that if as few as one person in 100 you dun actually pays, the operation is profitable. As for the the ninety ninety you wrongly dun, that is no matter, no time to waste on regrets, there are always more new people to dun for any hair thin reason. Valid, invalid, all this does not matter, its how many can you get to pay today. Helping this business model are two groups of people. (1) The set of easily intimidated and bullied who figure paying is the best way to make the problem go away. (2) The set of people who need a loan or mortgage fast. The loan grantor says clear this colletion agency off your credit report or teh loan is a no go. Often paying the CA is the fast way to a loan. In those two cases, the activities of the JDB CA is more a matter of criminal extortion and racketeering than the actions of a legitimate company fufilling a socially needed role.
But in the end its a matter of only MONEY. If the business model generates more income than expences, its a going concern. If not, it goes belly up and how many come for the funeral?
In my case I assess the box score as follows:
Junk debt CA has three letters to me costing less than $1.00. Probably bought debt for fourty cents or so. Little labor in it and when you encounter tough
customer, write off investment and go dun someone else. Life goes on--win some lose some. Always more fish in sea.
Me: Lots of time, anxiety, and postage. Given one certified letter costs $4.42, I am already way behind. Now I am going to have to clear up things with the CRA's which means more certified letters. On the plus side I learned more than I ever wanted to know about how rotten these jerks are.
Actually this junk debt buying business model is hugely sucessful. Just go to their web sites, see all the smiling people. Enough to bring tears to your eyes if you happen to be a crocadile.
I think everyone on any side of the credit system things these junk buying collection agencies are a bad thing. They perform no social purpose, tar more ethical companies with the same brush, and just sow general misery inperfusion.
What strikes me is that the only way to put these
companies out of business is in finding ways to increase the costs of wrongly dunning someone from near nothing to at least $10.00. Even that would be enough to put them out of BIZ. If nothing else, they pass their costs on to the CRA's who must clean their mess up afterward. Yes, these JDB CA's do pay the CRA to access reports, but have to cost the CRA's more money to correct the unjust damage they do in such profusion---and correcting credit reports is a dead drag on CRA profits.
Well folks, I toss this out to you for any ideas on how to throw as many monkey wrenches as possible into the junk debt buying collection agency's business model. I think the key is kiting the cost of them being wrong, something they are very good at.
Hi Welcome to the forums. These days junk debt buyers are par
Hi
Welcome to the forums. These days junk debt buyers are participating in the burgeoning multi-million dollar industry. They are purchasing debts on uncollectible accounts from the original creditors for pennies and then, they are determining which consumers will be paying based on their credit scores.
The consumers can protect themselves by knowing the statutes of limitations for delinquent debt against the junk debt buyers. Based on the time period when the debt became delinquent, they can analyze whether a lawsuit can be filed by the creditor. If it is within the time period, then the consumer is required to pay irrespective of where he is presently staying. If the time has passed, the debt has expired and is required to be removed from the credit report. The companies cannot legally contact them for the recovery of such debt.
The junk debt buyers are often aggressive to receive their payments. They even do predatory practices by re-aging the accounts and make it look more recent. This way, they are able to give it a recent look to the consumers' accounts and thus force them to pay, calling them numerous times to pay, and even giving false information about the debt and the statutes.
Things that should always be kept in mind while dealing with the junk debt buyers.
- Ask for Proof whenever any claim is made.
- Never Acknowledge a Bad Debt which has gone beyond the statutes.
- Put everything in writing for evidence.
- Monitoring your credit report is very important.
- You should opt out of prescreened credit offers
- Get help from the professional debt consultants.
Regards
Roxette
off message
Thank you Roxette for your prompt reply.
But this did not address my post. While the advice you gave is excellent generic advice, I already stated that
chasing off this low ethic's CA was misssion already accomplished. The reason this drive off was so easy for a newbie like myself was simply that the account they were trying to collect on was so dubious they never should of tried to collect on it in the first place. Of course this and other web sites helped.
I do not seek to reform the junk debt buying CA, I seek ways to put them out of business so that no one should ever have to go through this misery.
When a collection agency is willing to be wrong 25, 30, 50, or 99 times for every time its right, it does not take a genius to see something is really wrong.
Lets put our heads together, use people power, and lets find ways to put the worst offenders out of BIZ.
Yes, I truly appreciate your thoughts and though our approach wa
Yes, I truly appreciate your thoughts and though our approach was different, but we were reaching the same conclusion. Our aim is to create awareness among the community so that no one falls in the wrong hands and becomes a victim.
Let's join our hands together to bring awareness among the mass and relieve their pain as much as possible. Your active participation in the forums will be really helpful to the community and you can do this by signing up on this board completely free of cost.
We hope to hear about your joining this board as a registered member soon.
Regards
Roxette
joining disconnect
Roxette, I might be happy to join these boards. Just one problem--I am supposed to give my personal information to a debt consolidation counselor as a pre-condition with the implication that I owe this CA.
1. I say again this debt I was dunned for was not mine.
Of that I am 99.999999999999% sure. I am still trying to get to the bottom of why I was contacted by the CA, but I am 99.99% sure its the fraud of the original creditor and that the collection agency knew exactly how dubious this alleged debt was before they dunned me.
2. I and the vast majority of the American public are just one debilitaing auto accident or one debilitating medical condition away becoming a debtor unable to pay bills. I have nothing against debtors or good debt councelors--although I have heard horrors stories about bad debt councelors. Nor am I happy to use various web sites that teach the deliberate evaders of payin just debts exactly how to use any tactic under the sun to avoid paying what they justly owe and can pay. But sometimes this is where the best education on credit laws are to be found. I seek a fairer and more humane system for all.
3. But Roxette, if you can't concede that what I am detailing is something fundementally unfair, that collection agencies are sometimes 100% wrong, Why not start with the truth ? One size does not fit all.
Hi Quote:I say again this debt I was dunned for was not mine
Hi
Quote:
I say again this debt I was dunned for was not mine. Of that I am 99.999999999999% sure. I am still trying to get to the bottom of why I was contacted by the CA, but I am 99.99% sure its the fraud of the original creditor and that the collection agency knew exactly how dubious this alleged debt was before they dunned me. |
Did you take legal help to fight against the CA? You have your rights protected under the law. So many cases have been found where the CA wrongly charges the debtors unscrupulously. I assume reading your post that you will win your case in the court.
Best of luck
Regards
Roxette
little problem
Its one thing to have a very strong suspicion. What I still lack is the proof admissable in a court of law.
Right now I feel like a homeowner who chased off a thief before the thief could steal anything but too late to prevent the massive property damage done in the break in. But I know who the bugular is, don't yet have enough the prosecute, but I can sure make it hot for the thief meanwhile.-- and all the thief's friends. Birds of a feather steal together.
Meanwhile slowly looking for the needed proof.
Thief may have one round one, but it was one, two, three strikes and CA was out.
Now for the rest of time, its my turn at bat.
Hi I am sure that you will definitely find something as evide
Hi
I am sure that you will definitely find something as evidence to prove your point in the court.
Can you locate any of their letters that they might have sent to you that goes out of the legal way? Did you record the phone calls? Have you taken a caller ID or an answering machine to record the future calls?
Regards
Roxette
do not have.
Have retained all three letters sent by CA. Stupid and vague yes, illegal no.
Did not record first call--ignorant about credit law then---smarter now. But even then no illegal threats in verbal call. The JDB CA's rudeness still rankles. No call backs to date.
Until I get more proof, its just that I ran off the CA off unpaid. Meanwhile, if I can help anyone else give them the bum's rush with oak leaf clusters, I will.
Of course I have no guarantee some other JDB CA won't try to same stunt with the same bogus account. Next time I will be loaded for bear. And my State is a one party State. Phone recorder ready to go.
But I also remind everyone, my strategy worked because this was not my account. To those who do owe
and deal with ethical CA's who do have a leg to stand on, thumbing your nose at or ignoring the ethical CA may not be wise. This forum can help you
get the tools to better deal with these ethical CA's.
Remember, the standard form letter you get gives you 30 days to contact them before you lose important legal rights. Use a few of them to educate yourself before you phone them if you are a newbie. Ethical CA'S will work with you. Its just the unethical JDB CA's I have no use for. But always remember, existing law requires the CA provide you with real debt validation-----its your legal right------and if they can't provide that real validation they do not have a leg to stand on. And can't do anything to you until they can validate.--some will try to give you some mockery of debt validation. But this forum will tell you what real debt validation is. Accept no inferior substitutes.