Debt buyers are companies that purchase defaulted debt in bulk from your creditors, often for pennies on the dollar. Also called junk debt buyers, these large finance companies purchase pools of debt, including your debt, and then try to collect it from you directly. The debt buyer industry has grown with the proliferation of consumer credit cards. Nearly all debt buyers purchase charged-off credit card debt often after all other in-house collectors and collection agencies have been unable to collect on the debt.
Are Debt Buyers More Aggressive Against Me?
The short answer is YES. Debt buyers enjoy certain special protections in the collection of purchased debt and aren’t subject to the usual consumer protection restrictions. They are a well-tuned industry and are experts in collecting debt in order to get a return on the investment they made in purchasing your debt.
Debt buyers are more likely to commence collection actions and pursue them to final judgment and enforcement through wage garnishments, levies and court liens on real estate. Although they purchase debt at a deep discount, they are adamant about collecting the full amount of the original debt, plus interest, fees and their costs of collection.
Bad news: More aggressive. Good news: More defenses if you assert them.
How Can I Defeat A Debt Buyer?
If a debt buyer sues you, there are a number of defenses that may be available to defeat the suit or force an affordable settlement. Defenses are exceedingly hard to prosecute in Court on your own. They are highly technical and require the expert representation of a specialized attorney on your behalf. As consumer debt defenders, we can assert a variety of defenses against debt buyers on your behalf, including:
- Statute of Limitations: The collection on a debt may be time-barred. This is a somewhat complicated analysis but it means that under certain circumstances, the creditor’s failure to act under the State Laws in Connecticut within 6 years can make the debt stale and time-barred from litigation.
- Missing Paperwork: The debt buyer must prove by documentation, that they own your debt through Assignments or Bills of Sale from the original creditor with an unbroken chain of title. Further, they must prove you have obligated yourself to the debt; i.e., signed a Contract or used the credit card.
- Faulty Records: Debt buyers may not have all the proper billing and payment records or histories of your account, and is the interest calculated correctly?.
- Lack of Evidence: Like all creditors, debt buyers who are challenged in court need to prove their case. Lack of records or documents happens often in the fast-moving credit card industry and debt buyers’ bulk purchases of debt “as is” often leads to sloppy and missing records, which leads to defendants winning.
Major Debt Buyers In Connecticut
If you have been served by one of the below Creditors or their attorneys, then you need to seek legal advice immediately. Call us today to ensure you have a good defense.
- Portfolio Recovery Associates
- Midland Funding, LLC
- Cavalry SPV I, LLC
- CACH, LLC
- CAZ Creek Funding I, LLC
- MTAG Caz Creek
- Tower Lien
- Midland Credit Management Inc.
- LVNV Funding, LLC
- Asset Acceptance
- American Tax Funding
- National Collegiate Student Loan Trust
Put Our Expertise to Work for You
At the Law Offices of Neil Crane, we’ve been dealing with debt buyer collectors and their attorneys since 1983. We utilize our knowledge of debt defense, bankruptcy and customized involvement to deal with all creditors, calls and lawsuits. We know all the options and all the angles. Furthermore, all of those companies and attorneys know us, our experience, expertise and commitment to all of our clients.
To learn more and get the benefit of our decades of experience for clients just like you, call me for a free consultation at 203-230-2233.