You have a VISA, and next thing you know,
you are sued by some company you never heard of.
Chances are, it is one of the debt buyers in a multi-billion dollar industry.
Zombie debt, not unlike the zombies in the TV show on AMC.
Many of these debts have a virus that brings them back to life, even after you discharged them in bankruptcy, or the statute of limitations expired, or, maybe, they belong to someone else, or, even if it was your debt, the amount claimed in the lawsuit is wrong.
The Boston Federal Reserve issued a report on Debt-Buyer Lawsuits.
Collection of these is a mill operation at both ends.
The debts are sold in batches of thousands and tens of thousands at a time.
No paperwork, just computer records, maybe one screen worth for each debt.
And the law firms hired are mills, just pumping out cookie cutter collection suits.
Defending these suits is an alternative to filing bankruptcy, but we lawyers have to charge for our time defending suits. And the zombie debt buyers know this.
Even though they pay five cents on the dollar, or less, when they buy the debt, they will sue you for the whole amount.
Some of the problems, from the Office of the Comptroller of the Currency findings as stated Fed report:
Oddly enough, these debt buying companies are NOT looking out for your interests.
There may be Fair Debt Collection Practices Act violations in what they do, check with a consumer attorney on that.
Quality sacrificed for quantity, in the name of efficiency, but actually motivated by greed.
I understand the efficiency of a bank or credit card company deciding to sell off bad debt for a discount.
But you cannot convince me that they do not know, or cannot find out, exactly how much is owed on each account, whether it was already discharged in bankruptcy, et cetera.
They rarely pass along the original documentation of an actual contract between you, the consumer, and the original creditor.
It must exist, somewhere.
That is what leads to the false affidavits, someone who knows nothing signs an affidavit that yes, this is the stuff we bought from ABC credit card company.
So what? When the stuff does not include an original or copy of the credit card agreement signed by the consumer.
Courts should hold the zombie debt buyers to the standards required by the law.