A couple of years ago in the midst of the “Great Recession” we started to hear complaints about “Junk Debt Collectors.” Because of the failure of financial institutions such as Countrywide and others, many past due debts, even home loans, were not the subject of collection efforts for years.
The collection value of such old debt is minimal and some has even gone past the statute of limitations, 6 years on a written account contract in Washington.
A number of things will tip you off that the contacts you are receiving are from Junk Debt Collector:
- The debt is more than 5 years old.
- The attorney is not located in Spokane, but Portland, Seattle, Denver or elsewhere.
- Midland Funding, Portfolio Recovery Associates and LVNV are very active junk debt collectors in this area and nationally.
- Early efforts are made to compromise the claim for a smaller amount.
Volume Discount Collectors
Keep in mind these are volume discount collectors. They did not pay face value for the assigned debts, bought in bulk for cents on the dollar, and any recovery is a win for them. They may not be able to prove the original debt because of lack of documentation and may be unable to collect in court because of the statute of limitations. It is also a violation of the Fair Debt Collection Practices Act to try to collect such an unenforceable debt. Collectors risk punitive fines and attorney fee awards for such violations.
Forcing the Cessation of Junk Debt Collection
We examine each case for these legal issues before approaching with settlement offers. We have successfully forced cessation of collection efforts in some cases, and deep discounts in others. An attorney can evaluate your individual case efficiently if you are the target of a Junk Debt Collector and determine the best way to protect your rights and assets.
Recent Comments