How the Business of Debt-Buying Affects Consumers

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Collectively, American consumers are currently over $12 TRILLION in debt. Out of that $12 trillion, more than $400 billion has been deemed ‘seriously delinquent.’ Outside of a library fine I once racked up because a book that fell into the crack of my couch, I get pretty panicked if someone tells me I’m seriously delinquent. Just the sound of the phrase rolls off the tongue in a negative way, doesn’t it?

As it should: debts don’t get earmarked as seriously delinquent until they are 90 days or more overdue. That may not seem like a long time in the grand scheme of life, but in the world of debt, three months of failing to make a payment is long enough for lenders to get good and fed up.

What is debt buying?

Because of the whopping trillions of dollars of consumer debt in this country, an entirely new industry has spontaneously developed, and it’s more than a little shady. Lenders don’t want to wait to get paid. Seriously delinquent debts are often sold by lenders to companies whose sole purpose is to buy debt for pennies on the dollar in order to make at least a tiny bit of money rather than none at all. This process is part of the dubious debt buying industry – where debt is bought and sold, bought and sold ad infinitum, potentially transferring hands a veritable profusion of times.

Astoundingly, debt buyers can collect on the full amount of an original debt, even though they will have paid a supremely small fraction of that amount when they purchased it from the lender.

What does this mean for indebted consumers?

The debt buying blitz in the United States is problematic for several reasons. Firstly, many original lenders don’t supply debt buyers with much information about the debts that are switching hands. Compounding this issue is the fact that debt buyers are often unscrupulous about whether or not the debts they purchase are even valid. That means that they may purchase debts with missing or incorrect data that can lead to them harassing you for money you don’t even owe.

Ruthless debt buyers and collectors typically don’t care whether they’ve got the right person on the phone or whether the debt has been discharged via bankruptcy. They don’t even check to see if the statute of limitations to collect on a debt has passed. They’ve got a list of names and contact information, and often times millions of dollars they can potentially pocket if they can convince enough people to fork over the money.

Fueled by a strong desire for money, when debt buyers set out on their mission to collect, they’ll frequently go to unimaginable lengths in order to get you to pay. Threats, lies, scare tactics, cursing, impersonation, degradation, and humiliation are just a few of the strategies employed by people in the debt-buying and debt-collecting industry.

If you’ve experienced any of the above and feel that 1) you don’t owe the debt in question; or 2) a debt collector has acted illegally – you have recourse. Veitengruber Law helps people like you every day, and we’ve grown quite adept at dealing with distressing debt collectors. Want to find out if we can help you? Call us now: (732) 852-7295. We will not overcharge you and we’ll consult with you for a full hour free of charge. Best of all – we’ll put an end to your debt problem once and for all.

Image credit: Pat Pilon

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