23 May Debt Collectors Are Making Money Hand Over Fist In This Time Of Crisis
I read a very disturbing article this morning which I do not care to cite to. The article discussed how one of the hottest stocks right now is a company that buys bad debt from credit card companies like Visa, Mastercard, Discover, Capital One, HSBC, Providian/ WaMu and American Express at deeply discounted rates, and then seeks to collect the entire amount.
The article touted the fact that as Americans sink deeper into debt, foreclosures continue at an alarming rate and gas prices rise on a daily basis, this company is positioning itself to become a leader in the debt collection industry. The future looks very bright for the debt collection industry.
Now don’t get me wrong I am a realist, capitalist and I understand the business of debt collection, but I am also an American, who still feels very lucky to be living in the greatest country on the planet.
The Credit Industry exploded in the 1980s and has been going like gang-busters ever since. Their goal is to eliminate the use of cash and to keep us all in debt forever. This is unfortunate, but true. We are bombarded by the media with message after message of how to have this or that with no money down and how we can keep up with Mr. and Mrs. Jones down the street by using our good names and credit.
Well, unfortunately, those days may be over for many of us, and that is fine by me. What I don’t like is the way these debt collectors operate. I was speaking with an individual yesterday who was contemplating filing for bankruptcy. I was shocked by the things that he was saying to me about the way he was being treated by the Creditors. The Creditor’s actions are in violation of federal and state consumer protection statutes.
One of the most common tricks in the credit industry is the re-aging of debt on credit reports. This is common by low-life debt collection companies. They report to the Credit Reporting Agencies (CRAs), Equifax, Experian and Trans Union, that the debt is actually newer than it really is, so the debt will remain on a consumer’s credit reports and thereby damage the consumer’s true credit history. So, they not only abuse the heck out of consumers, they lie to the CRAs and then make enough money to catch the eyes of Wall Street investors as a way to make money in the future.
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