Bad Debt Buyers

Debt buyers acquire accounts from creditors or other debt buyers who sell charged-off accounts for pennies (as low as 1/3 of a cent) on the dollar.  The gross amount of debt sold to Debt buyers has increased  $660 million in 1993 to over $100 billion in 2011.

Debt buyers typically have very little information about the debts they buy. Generally they acquire limited electronic information about the debt from the seller, but often do not have a copy of a signed contract, the charge slips, the application for the credit card, or a written assignment of the claim. Claims are frequently inflated, with interest and fees compounding monthly over a great number of years without any accounting for the huge growth in the balance. 

As the Debt Buyers Association (the national trade association for debt buyers) admitted in Debt Buyers’ Assoc. v. Snow, 481 F. Supp. 2d 1 (Dist of Columbia 2006),

“Debt buyers lack sufficient information to distinguish between the stated principal and interest of the loans they purchase from originating lenders.”

In the case of Midland Funding, LLC v. Brent, 2009 U.S. Dist. LEXIS 87266 (N.D. Ohio 2009), a debt buyer was found in violation of the Fair Debt Collections Act for using “robo-signed” affidavits that falsely claimed to be based upon the affiant’s personal knowledge.  The debt buyer settled the case for $5.2 million.

These are a list of bad debt buyers that may have contacted you

If you are getting called by any of these companies
Contact Us Today at (602) 230-0995 or click here

Posted by AZ Debt Lawyer  |  Options for fight a credit card lawsuit: Retain an attorney