Remember my recent post about how little proof debt buyers have when they sue? Well, Walter shows that this isn’t just a New York problem. For example, he says:
Debt buyers pay a few pennies for the right to collect a dollar that the consumer once owed to someone, typically a credit-card issuer.
The debt buyer receives only sketchy documentation of the debt: Certainly not enough to prove the debt in a contested court case.
To obtain proof that the consumer actually once owed debt, the debt buyer must pay the issuer and wait up to six months.
And the proof itself is generally laughable: Maybe a few bill-stuffer contract pages that no one can prove were ever sent to the consumer and some printouts from a computer database whose integrity no one can vouch for.
Debt buyers staunchly resist efforts to make them document their chain of title too, claiming that their agreements and the schedules that would establish ownership are confidential.
He ends by saying that “consumers burdened by many debts should seriously consider bankruptcy, which will usually completely discharge unsecured debt,” but that is only as a last resort.
Between the lack of proof that debt buyers have when they sue and the fact that there are lawyers out there who can help defend lawsuits from debt buyers, there’s a very good chance that your lawsuit may be tossed out of court if you act quickly enough.