TLP: Don't Forget To Read The Fine Print

Saturday, July 31, 2010 , 3 Comments

credit card debt
Not that it's a good thing to walk away from your debts, but when people don't pay their credit card bills, there's a process. And in some cases, things drag on so long that the statute of limitations runs out and the debt becomes noncollectable.

Not that some "industrious" people don't try.

In most states, it is legal for collectors to pursue out-of-statute debt, as long as they do not file a lawsuit or threaten to do so.

But some lawsuits are filed anyway, and consumer groups and even some industry consultants argue that collectors routinely harass debtors for unpaid balances that have exceeded the statute of limitations. In some cases, collectors have unlawfully added fees and interest.

“It’s so cheap, if you can work it smart, you don’t need to collect that much,” said John Pratt, a consultant to the debt-buying industry and an author of “Debt Purchasing: An Investor’s Guide to Buying Debt” (Morris Publishing, 2005). He said investors in old debt generally hoped to recoup two and half times what they paid for a group of claims.

Because collectors cannot sue on old debt, he said, they are more likely to resort to abusive tactics. “Time-barred debt is where the worst abuse has occurred towards the debtor,” he said.

In a report issued July 12, the Federal Trade Commission called for “significant reforms” in the debt collection industry and recommended that states change the murky laws that govern out-of-statute debt.

The statute of limitations for debt varies by state, generally from three to 10 years. In many states, collectors can restart the clock if they can persuade the consumer to make even a tiny payment toward the old debt. Debt collectors generally do not tell consumers that making a payment will revive the debt so it can be legally pursued.

“The point of the payments is not so much to get the money” as it is to restart the clock, said Daniel Schlanger, a New York lawyer who represents consumers in cases against debt collectors.
Sounds pretty fucking sleazy. You can just imagine the back-and-forth as the collector tries to schmooze the former card-holder into making a small payment. "It'll help your credit rating ... You don't want to be a deadbeat, do you? ... It's not like you have to pay the whole thing." And then it gets ugly once the debt is "live" again.

Of course, this is one more reason people should either understand what it means to have a credit card or just say no.

The Lazy Paperboy

Some say he’s half man half fish, others say he’s more of a seventy/thirty split. Either way he’s a fishy bastard.


Anonymous said...

Did you send your gift?..put it on your card...oh they already did that for you!

Chelsea's Wedding
Let Them Eat Cake

The Guardian (UK) reports that according to US government reports, one million American children go to bed hungry, while the Obama regime squanders hundreds of billions of dollars killing women and children in Afghanistan and elsewhere.

The Guardian’s reporting relies on a US government report from the US Department of Agriculture, which concludes that 50 million people in the US--one in six of the population--were unable to afford to buy sufficient food to stay healthy in 2008.

US Department of Agriculture Secretary Tom Vilsack said that he expected the number of hungry Americans to worsen when the survey for 2010 is released.

Today in the American Superpower, one of every six Americans is living on food stamps.
The Great American Superpower, which is wasting trillions of dollars in pursuit of world hegemony, has 22% of its population unemployed and almost 17% of its population dependent on welfare in order to stay alive.

The world has not witnessed such total failure of government since the final days of the Roman Empire. A handful of American oligarchs are becoming mega-billionaires while the rest of the country goes down the drain.

And the American sheeple remain acquiescent.

I'm guessing that by "gift" you mean the cost of Secret Service protection for the former president and whomever else qualifies by virtue of who they are ...

"Now comes the politicians’s daughter as celebrity. According to news reports, Chelsea Clinton’s wedding to investment banker Mark Mezvinsky on July 31 is costing papa Bill $3,000,000. According to the London Daily Mail, the total price tag will be about $5,000,000. The additional $2,000,000 apparently is being laid off on US Taxpayers as Secret Service costs for protecting former president Clinton and foreign heads of state, such as the presidents of France and Italy and former British Prime Minister Tony Blair, who are among the 500 invited guests along with Barbara Streisand, Steven Spielberg, Oprah Winfrey, Ted Turner, and Clinton friend and donor Denise Rich, wife of the Clinton-pardoned felon."

Whether or not there was a wedding, Clinton would have his detail. So does Nancy Reagan, Jimmy Carter and lots of Bushes. And if Tony Blair gets protection in the States, he gets it at weddings or the beach or board meetings.

And to the extent any of it's on our "credit card," it's only a recurring expense for so long.

elf2006real said...

"US Department of Agriculture, which concludes that 50 million people in the US--one in six of the population--were unable to afford to buy sufficient food to stay healthy in 2008."

Well, they damn sure ain't skinny, are they? USDA administers WIC. They have a built in conflict of interest. Isn't this the same govt which tell us we're too obese? At least that I can confirm with my eyes.

Isn't obesity a crisis? Isn't it the chief "crisis" in Health care, after old age?

And who is it that's the fattest?

The poor.