of debt collectors.
Sure, filing bankruptcy stops all debt collection activity, but
are there other ways to deal with debt collectors?
No, that is not a picture of a mean debt collector. Unless you don’t pay me.
DEBT COLLECTOR TRICKS
So, most people who are sued for debt do not respond.
The creditor gets a default judgment for whatever amount they put in their complaint.
Base on what? Based on the paperwork attached to the complaint.
Robo-signing is a term that came into common usage in reference to the mortgage foreclosure crisis.
Employees were paid minimal wages to sign papers all day, which turned out to be affidavits about mortgage documents being real. Said documents were used to kick people out of their homes.
Guess what? Debt collectors like robo-signing too!
Lawsuits filed to collect old debts usually rely on sworn statements called affidavits. Debt buyers draw up these statements to stand in for account records — contracts and account statements — as proof of the debt. Signers of the affidavits swear that they have reviewed account data to ensure that the claim is accurate. But a number of court cases found that major debt buyers churned out the affidavits without checking records. In a landmark class-action suit against debt buyer Midland Funding, for example, employees of the debt buyer admitted to signing affidavits at rates of 200 to 400 a day.
Read more: http://www.creditcards.com/credit-card-news/debt-buyer-robo-signing-under-fire-1282.php#ixzz36L9Sh3DC
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I have to back up the truck.
These days, the original creditor rarely files the lawsuit anymore.
There is a multi-billion dollar debt buying business, with companies like Midland Funding buying batches of credit card debt by the tens of thousands at a time.
Just as with the mortgage market, it cost money to get originals, or even copies, of the credit card contract, or other proof of use of the card, payments made, and so on.
So, it is easier just to buy computer records, which have maybe one page with start date, account number, balance.
Then you have your employees sign affidavits that the amount is correct and from the records of the credit card company that sold the debt.
And, guess what? The bad guys sometimes add interest, or other charges, that do not belong there.
But, it cost money for you to hire a lawyer to fight this stuff, which they know and count on as part of the debt buyer business model, so it may be cheaper and make more sense to file bankruptcy.