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Debt Buyer Lawsuits


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Posted by Paul (216.127.82.99) on May 16, 2004 at 13:05:26:

Some interesting reading for anyone risking or facing a lawsuit from debt buyers.
Read these collection attorneys' own statements. They know they can’t prevail in the absence of default judgments or summary judgments (where a person admits sufficient facts.) Fight them in court,, they’ll have to fold.

I’m posting this information because these debt buyers are making a mockery of the judicial system. Courts are supposed to settle legitimate disputes, not be a forum for 2 cents on the dollar stick-up artists with law degrees stealing 150% of your money. There is a reason these within SOL accounts sell for pennies on the dollar. There is NO documentation on these accounts.

From collectionsword.com

“However, there are law firms that are cautious about buying debt and question the efficiency with which lawyers can collect on such paper. “We represent companies that buy debt, but it’s not as good a field as it might seem,” says Gerald S. Levy, director of operations at Wexler & Wexler in Chicago. He says debt buyers often don’t obtain enough background on the debtors, which makes collections more difficult. Substantial information is not in debtors’ files, Levy says, and if they dispute the debt, the law firm has to drop the claim.”

“Neil Spector, a partner in Tampa, Fla.-based Kass, Shuler, Solomon, Spector, Foyle & Singer PA (formerly Kass Hodges PA), agrees. “Purchased debt is typically older than that gotten directly from the original creditor, and documents are harder to get for litigation,” he says. Because the debt is older, address information on the debtor may be outdated, so skip tracing services must be employed, adding cost”


“Risky Business
Some collections law firms take a hands-off approach to purchased debt. “We refuse to represent people who purchase debt because there are significant risks beyond those for representing regular creditors,” says I. James Frankel, chief executive officer of Kramer & Frank PC in St. Louis. Some of the problems with serving purchased debt include lack of proper documentation, history of the claim, and personal knowledge of the creation and record keeping for the loan. “Sometimes,” he says, “you can make demands on debt that is already paid or the people are in bankruptcy, both violations of the Fair Debt Collection Practices Act.”

http://www.collectionsworld.com/may_art3.htm

Also read the Collection Agency Frequently Asked Questions

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