No froo froo here. Scarey stuff!

K

Kaya

Senior Member
Location
Northern Cali
http://www.huffingtonpost.com/2014/06/02/debt-collectors-wages-savings_n_5364062.html

Yeowch!!! Looks like flat out theft to me..especially the guy that lost his moms house.

People with overdue bills have long complained of harassment from debt collectors, from late-night phone calls to frightening in-person visits. Now it appears the industry has found far more troubling strategy: Filing lawsuits against debtors -- often, consumer advocates say, on the theory that they won't ever show up to court to defend themselves.

The consequences are dire when the debtors don't appear in court. A judge can put a lien on someone's home, garnish wages, even freeze bank accounts -- all without a person ever getting a chance to fight their case. And at times, collectors file suit in error. Consumers interviewed for this story described cases where they were never told they were being brought to court, or were sued for debts on credit cards they never had.
Click to expand...


 

In your opinion..just how far can collectors go? I mean..if someone owes 2500 bucks on a credit card and does not pay....does this mean the cc company can put a lien on a house worth 75,000 dollars?? Of course not. So why is it happening? Plus, what if the loan is fraudulent and the cc company or the people behind that company are nefarious individuals and want to "steal" homes to resell for major profit? Like, what if 100 people are deliquent on a bill, the collectors seize their property and RESELL it to collect what is due them and they garner 100 homes worth multi times what they are owed. Do the math. And yes, I am sure it happens. So..is there some kind of restrictions for collectors? Or is it an open market? And what about people who are victims of fraud? Or live in another state and the collectors seize a home and claim they sent out the lawsuit IN that town the home is in...but the owner lives in another state and never got the notice?

So many things can go wrong. I can see owing a debt and collecting on it, but not like what is in that link I supplied. That is going way overboard and is theft of personal property in my opinion.
 
Same way with bail bondsmen; you skip town and yo daddy loses his house.

Best way is pay your debts and stay out of jail. Remember....there used to be "debtors' prisons !
 
I would say that if someone owes you money, you probably want it back - especially if there was an agreement. Now there is secured and unsecured debt and I think you would know the risk you take when you give your house or any other property as collateral and then you stopped paying. As for undecusred debt (like credit cards), they have to go through the costly process of suing you before they can get a judgment and go after your assets and it usually never happens. I was a collector and it is very frustrating for a business to provide goods and/or services and then lose money because the client skips.
 
Businesses like the words, Tax Write Off. When the debt is small, it is annoying, but it can be written off. It's when large debts like cars, homes, vacations, and the like that will get you into the courts.
Some debts cost more to retrieve than the original debts.
In Texas we can homestead our homes, and only the IRS can take it way. Unless they have changed that, I'll at least have a home. :hide:
 


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