Robosigning "debt collectors" are clogging the courts

Discussion in 'Politics, Religion, Social Issues' started by Thomas Veil, Jun 5, 2013.

  1. Thomas Veil macrumors 68020

    Thomas Veil

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    #1
    Okay, let me get this straight...it's government that's out of control??
     
  2. Technarchy macrumors 603

    Technarchy

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    #2
    An easy way to stop this is make the original lender/account hold the debt rather than shifting debt around to other firms.
     
  3. ucfgrad93 macrumors P6

    ucfgrad93

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    #3
    That, and people should actually pay their obligations.
     
  4. Technarchy macrumors 603

    Technarchy

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    #4
    I agree people should pay their debts, but I firmly believe that when organizations know they can dump bad accounts easily it makes them lazy and predatory, where accounts are opened for people they know can't pay but the organization can just dump the liability unto someone else, so what does it matter.
     
  5. thekev macrumors 604

    thekev

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    #5
    Debts afaik are treated as marketable securities and often packaged and resold, so it seems like a very long e-trail, especially considering bad debts may be re-sold to collections at whatever percentage. I've never personally liked the practice, because it acts as an enabler in market inflation. At an abstract level, cheap loans mean things can be bid higher. I'm mainly referring to housing and "necessary" commodities with that statement, not so much loans taken out to expand businesses.
     
  6. Technarchy macrumors 603

    Technarchy

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    #6
    Well put. Anyone that actually believes their home increased in value 500% after 2 years might learn a thing or two from this.

    And then there is college tuition costs...
     
  7. Gutwrench macrumors 65816

    Gutwrench

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    #7
    I get what you're trying to say but the secondary market plays an important role by providing liquidity for the lenders , helps to keep interest rates down and more uniform. Again your frustration is understood but I believe your cure is likely worse than the disease.
     
  8. Thomas Veil thread starter macrumors 68020

    Thomas Veil

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    #8
    Then how did we survive before we had a secondary market?
     
  9. Gutwrench macrumors 65816

    Gutwrench

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    #9
    You mean way back in the late 30's?

    There aren't enough fingers to point at in laying down blame but focusing only on the secondary market as a whole is terribly short-sighted and ill-informed. Just my opinion.
     
  10. samiwas macrumors 65816

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    #10
    In reading the article, it seems common that many people don't know that they are being pursued for debt, and don't even know what the debt is. Maybe it's possible that many of these debts aren't even real, just collectors abusing the system.
     
  11. ucfgrad93 macrumors P6

    ucfgrad93

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    #11
    While I don't doubt that this happens, I think it would be a small percentage.
     
  12. samiwas macrumors 65816

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    #12
    If 77%-89% of court cases in the counties profiled are debt collection-related, I'd actually be shocked if it were only a small percentage. Otherwise, there is a LOT of unpaid debt out there, bad enough that court needs to get involved. If there indeed is that much debt needing to be collected, that's pretty bad.
     
  13. GermanyChris macrumors 601

    GermanyChris

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    #13
    I just got a letter in the mail from a collection agency in VA looking for $1200 from a rental company for a place I lived in in 2010.

    The issue is I've lived here pretty much full time since '05
     
  14. samiwas macrumors 65816

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    #14
    As in, you're living in the place from 2010, or you live somewhere else, and this mysterious place you "lived" in 2010 is looking for you?

    Either way, it's exactly what I was saying. I think this issue probably more prevalent than just a few percent.
     
  15. GermanyChris macrumors 601

    GermanyChris

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    #15

    Yes..I owe 1200 to a place I supposedly lived in VA in 2010 even tough I lived in Germany.
     
  16. VulchR macrumors 68020

    VulchR

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    #16
    In the UK the situation is even worse. Somebody I know had a father whose estate owed money. She had no legal connection to the estate, but one day she found a debt collector crawling into her house through a bathroom window. Apparently in the UK this does not count as burglary becuase the window was open....:rolleyes:
     
  17. MrWillie macrumors 65816

    MrWillie

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    #17
    It used to be that only the original lender could sue or place negative remarks on people's credit report, but one of the Bush's ’fixed' that. :rolleyes: I think they need to go back to the way it was. And stop trying to collect $1200 on $200 debt.
     

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