Years ago, most consumers who chose not to pay their debts stopped worrying after several years had passed because not many creditors would try to collect these debts, especially when a small amount of money was at stake. But today, with the economy in less than stable condition, collecting old debts has become a booming and profitable industry and old accounts, once thought to be uncollectible, are now considered to be of great value and are collectible. Recovering even a small payment from debtors on these old debts, also know as “zombie debts” or “time barred debts,” can make collection efforts profitable.
In 2013 alone, over $75 billion in old debts were sold.
These zombie debts, also known as “junk debts,” are the “bread and butter” for junk debt buyers, and change the collections model from “contingency” collections (agencies work as agents for another company to collect a debt) to collection agencies owning bad debt and working for themselves to collect. Zealous collection agencies and companies can buy charged-off credit card accounts from the original lenders for pennies on the dollar, then use advanced technologies and credit scoring to target debtors that are more likely to repay.
Junk debt buyers may also be in the contingency collection business, OR they may contract with a contingency agency. Either way, junk debt is a multi-billion dollar industry and is responsible for a large number of debt collection and credit reporting violations of law.
The backlash of all this collection activity is potential and frequent violations of the Federal Fair Credit Reporting Act and the Fair Debt Collection Practices Act, as well as other must know federal consumer protection laws.
A Fair Debt Collection Practices Act Attorney could help you stop the phone calls and letters from Zombie Debt Collectors even if you do owe the debt! Don’t put up with debt collector abuse from Zombie Debt Collectors Debt Collectors, the Debt Collection Practices Act and State Debt Collection Law could help you stop the harassment and you could be entitled to monetary damages!
If you see these names on your credit report, call a Debt Help Lawyer!
According to a recent ICEF eNews letter written by the Executive Director of the Institute of Consumer Financial Education (ICFE) and Springboard, Nonprofit Consumer Credit Management (Credit.org), based in Riverside, CA., the some of the most prolific Junk Debt Buyers (some of which may be owned in part by others) are listed below:
- *Asset Acceptance (AAC)
- *Sherman Acquisitions/Sherman Financial Group/Alegis
- *Portfolio Recovery Assoc
- *Asta Funding
- *Encore Capital Group (parent of Midland Credit Mgmt)
- Allied National/Interstate Risk Management Alternatives (RMA)
- Cavalry Portfolio Services
- Unifund Group
- Oliphant Financial Corp.
- OSI Portfolio Services (part of the NCO Group)
- JBC & Associates
- Arrow Financial Services (majority interest acquired by Sallie Mae 9/04)
- RJM Acquisitions
- *CAMCO (Capital Acquisitions & Management Company)
- Phoenix Asset Acceptance
- First Select Corporation (part of Providian)
- Collins Financial Services
If you believe you are a victim of unfair or illegal debt collection tactics, submit your information to a FREE* Fair Debt Lawyer by:
The debt collector may just be liable to you for statutory damages of up to $1,000, plus any actual damages suffered, plus attorney fees!