Dateline NBC

[jeb]

Has been running a series on Debt and tonight they had the third part - Debt collections.

It is a very interesting program and gives insight into just how crooked some of these people are and the tactics - many illegal - some use.

Highly suggested watching for all here. - jb

http://www.msnbc.msn.com/id/21134540/vp/29923501#29923500

[relief13035]

I'm watching it right now in California. Good episode.

[OhioFiler]

I'm watching it right now in California. Good episode.

I Tivo'd it. Don't tell us how it ends!

[StartingOver08]

Excellent series...well worth the time to view it.

[jessegirl]

Wow...

[fltoo]

There is an easy fix to stop the violators. Fines need to be stiff enough to impact the bottom line of the company.

[huntersmommy]

Thanks for posting that!

[debtmonster]

I just watched the 3rd part. I have gotten a lot harassing calls since 1992 (during the 1st Georgia Bush recession). In all honesty, I have had some screaming matches (and I mean big ones), but I've really can't recall any of them ever cursing me or threatening me. I am amazed that I haven't received any threatening calls with the massive amount of debt that I am in. I guess I just got very lucky.

I'm going to go and watch the other episodes. Thanks for sharing that link.

[pookieny]

Funny that some of them were in Buffalo and the worst one in Depew.

My brother lives in Depew and works for a collection agency in Buffalo. It goes by the name of the IRS.

[jeb]

IF you haven't watched the first 2 parts, well worth doing so. Goes into how we got into this mess and the total lack - by design - of oversight. - jb

[SBayBruce]

I saw the program last night here on the west coast (they are finishing the debt part of the story on Sunday at 7pm PDT). I have to say, even though I dealt with some real "a" hole collection folks in my last BK, i did not ever have anyone representing that they were PD (from another city no less) or have some woman tell me "well, we'll just go ahead and pick you up."

This must be terrifying to people--even though if you pause a moment to think about it-your logical mind will come up with things like "Wait...why would the call come from MD? They have no jurisdiction here" not to mention as far as I know, invidual, unsecured debt is not a police matter, not in this country anyway. You have a warrant? Which judge signed it? Who is the ADA that requested it? Most people know, these bastards are full of crap, but if you're stressed out, and scared, and so forth, this may scare you into paying, which i guess is what they are trying to do.

And the other thing, Dateline took their lipstick cam to some collection angency employee hangout, as several collectors cheerfully, even proudly explained all the illegal things they do "every day."

These scum should get prison time.

[debtmonster]

http://www.newyorkconsumerlitigation.com/protecting-yourself-as-collection-agencies-go-out-of-business/

They are going out of business themselves, so they are resorting to the worst of the worst tactics to make a buck.

[jeb]

if you're stressed out, and scared, and so forth, this may scare you into paying, which i guess is what they are trying to do.

The money is the thing - they have you wire money to them and it never gets to any of your creditors. A total ripoff. - jb

[dingdong]

Maybe we could all form a collective "CA" together , buy a huge junk debt portfolio for pennies on the dollar, call everyone in the portfolio and tell them we will accept what ever we paid for the debt (next to nothing sometimes), and that if they pay ( give them as long as they need) that we will mark the debt as paid in full! Retire the debt forever and beat the weenie CA's at their own game.


Say you buy a portfolio full of debt that is very close to SOL so a 1000.00 debt was purchased for 20.00.

Offer the debtor a 20.00 pay off and then they ( the debtor) can sleep at night.

It would be nice to beat the jerks at their own game.


It would be like a CA co-op. It would really only work with junk debt but it would be cool to buy up all the debt and then just let it go for whatever the OC sold it for instead of screwing the debtor and adding ridiculous fees.
When I hit the big one I just may open the DingDong Collection Agency and let everybody off for next to nothing.

So if you ever get a dunning letter from the Ding DOng CA, don't be afraid to open it, and I promise I wont call ( unless I need to borrow a cup of sugar)

[dingdong]

Thought I would post a little info I found on a site that sells debt portfolios.

"Industry overview
Due to the historic profitability of the business, the debt buying industry has seen dramatic expansion in recent years. Debt buyers purchased approximately $110 billion in face value of delinquent debts in 2005, which is about double the amount bought in 2000.[1] Credit card debt comprises seventy percent of the accounts sold to debt buyers, followed by automobile loans, telecommunications debt and retail accounts.[2]

Depending on the age and history of the debt, a debt buyer typically pays between 1 and 12 percent of the face value of the debt[3], with the average price being 5.4 cents on the dollar.[4]"

I found the above info here http://www.debtsellers.us/debt-buying-info.htm

Another site I found says they have portfolios for sale at .0035!

Course those are probably mostly out of statute debt, but it gives you an idea of what a junk debt buyer pays for your debt, especially if it has gone to a tertiary JDB (CA).