Want to make millions of dollars by being cheap and lazy? Sure you do!
All you need to do is follow the exact same protocol used by the industry that buys up debts from credit card companies.
We’ll pretend that you’ve got the start-up capital and infrastructure, but once that’s out of the way it’s clear sailing.
You see, most debt buyers are lazy and cheap. It may not look that way on the surface, but dig just a tiny bit and you’ll see that I’m right.
Here’s what I mean.
Lazy Debt Buyers
After a February 2009 workshop, the Federal Trade Commission noted that, “the information received by debt collectors is often inadequate and results in attempts to collect from the wrong consumer or to collect the wrong amount.”
This leads to claims going to collection agencies after they’ve been settled or paid in full. Debts are improperly reported to credit reporting agencies as past due rather than paid in full. Debt buyers continue to pursue people after bankruptcy.
These sorts of problems are why lawyers like me exist, by the way. Because debt buyers are too lazy to verify their information before trying to collect from innocent people.
Cheap Debt Buyers
Charged-off credit card debt can be sold at a discount, but they’re usually sold in packages of thousands of accounts. That adds up quickly for debt buyers, who often pay millions of dollars to buy a single portfolio.
How, then, can debt buyers be reasonably called cheap?
Debt buyers get very little information from the originating creditor. What they do get is just enough to identify to whom they should be calling or sending letters, and nothing more.
Unless, that is, they feel like ponying up some more money. For just a few dollars more, the creditor will sell copies of the credit application, statements and other documents to debt buyers. Doing so would add to the final cost of purchase, but it would reduce the errors in collection and credit reporting.
It might also, dare I say, put consumer protection lawyers like me in a position of not having many clients. As I’ve often said, being put out of business due to lack of demand for my services would suit me just fine.
Easily Fight Back Against Cheap And Lazy
If you’re contacted by a debt buyer, demand proof of the debt as well as every penny claimed to be due. Don’t settle for verbal assurances, and don’t let yourself be bullied.
They’re demanding money from you, so it’s up to you to make them prove that they have a right to it. Period.
If they can’t prove the debt, don’t pay it. You can give me a call, or another lawyer who does this sort of work, and we’ll give you some pointers about protecting yourself.
Consider it your way of making the debt buyers lean and athletic, as opposed to cheap and lazy.