debt buyer Tag

04 Sep Zombie Debt, Being Sued by a Debt Buyer

You read the papers and a company you never heard of, say, Asset Acceptance, is suing you. They bought the bad debt from a credit card company. This is now a multi-billion dollar industry, big banks and credit card companies sell charged off debt, that is, debt they cannot carry as an asset on their books, to companies that buy bad debts for pennies on the dollar, then try to collect them. What did they get? The debt buying company gets a one page computer printout with your name, account number, and a balance. No contract between you and Capital One, or, whoever. No statements. Not even a breakdown of the principal, interest, late charges, an accounting of how the total balance was calculated.
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