Bankers want to make more money...

Legally or illegally - morally or immorally- ethically or unethically - they simply don't care who's life they ruin - even if its yours - just as long as they make more money.

And more money...

The unquenchable greed of bankers has created an ever increasing amount of past due debt. A windfall for collection agencies.

 "Since 1995, bank credit card issuers have sold off $390 billion in past due debt. The annual sales have grown from $4.4 billion in 1995 to $66.4 billion in 2005."

This increase in delinquent debt has caused an increase in debt collection agencies and attorneys. More and more parasites wanting to make more and more money - off the same people.

They have created a monster.

Each collection agency knows that most people have more than one credit card account - the average is four. They presume - correctly or incorrectly - that any person delinquent on one account is probably delinquent on their other accounts.

Which means that two or more collection agencies are trying to collect payments from the same person - at the same time.

Since collection agencies buy the debt - and don't earn income until the debt is collected - this fosters a mind set of - COLLECT THE MONEY ANY WAY YOU CAN.

This leads to abuses. Harassing phone calls. Fraud. Lying. Cheating. Stealing. Intimidation. Threats. Dunning letters. Lawsuits. Wage garnishments. Property seizures. And sometimes arrest.

All for the sake of a few dollars.

Where's government when you need it?

According to a Boston Globe article:

"Yet, in spite of all this, there is an eerie silence among regulators, policy makers, and legislators. Those who could intervene to right the balance between collectors and consumers are either unaware of the debt collection free-for-all, and the tens of millions of consumers caught up in it. Or, they are simply unwilling to act.

In Massachusetts, for example, almost 800 complaints about debt collectors flow each year into the office of Attorney General Thomas F. Reilly, whose state website declares that he is ''on the front line working for consumers.'' Yet since Reilly took office in 1999, he has initiated legal action against just one collection agency, a Danvers company that paid a $100,000 fine two years ago.

When Reilly's office announced that settlement with Schreiber & Associates, it called it just the start. ''This investigation is part of a larger initiative aimed at protecting consumers from unfair debt collecting practices.''

No legal actions have been announced since then, though a spokesman for Reilly said last night that five investigations of debt collectors are underway. See article here

A point to remember. Attorneys General are attorneys. Their colleagues, hundreds of thousands of them, make their living collecting debt. These Attorneys General aren't about to rock the boat and deprive fellow bar members of their livelihood.

Restrictive offers and protection

Debt Collectors are the bottom feeders of the legal system. They make money by intimidating consumers to pay pay old debts or charged off debts. They act as a third party to the original lender thus, putting them responsible for certain action under the Fair Debt Collection Practices Act. A collector does not want a smart debtor. You make their job tougher when you know the rules. According to and under the provisions of public laws 95-109 and 99-361, also known as the Fair Debt Collection Practices Act, you have rights. Read those rights in full, it will tell you what they can and cannot do. Before you make promises to a debt collector review your options.

Is the debt legally expired and are you risking renewing it by putting a promise in writing or making a payment?

Yes, that's right. Putting a written promise to repay an expired debt can renew the statute of limitations making the debt re-collectable. If you do this, you lose all rights to the expired statute plea. Once a debt collector has a new written promise to pay from you, it changes everything. Note, however we are talking about expired debts. If the debt is not expired and is not nearing the expired statute then this would not apply.

Is the debt legitimate. Do the figures match what the Original Creditor or Collection Agency stated you owed?

For CA- collection agencies: How many times have you seen your old debt for $500 turn into a new debt for $1000? When collection agencies purchase old debts they re-age it with all the new fees and interest from the date it was written off. Who is going to question every dollar if you do not? No one! It is up to you to use your rights under the law to ask for validation of a debt. If you have ever received a collection notice, it is stated right there: "If you dispute the validity of this debt you must notify us within 30 days or we can assume the debt is valid". Be sure to confirm the debt by way of VOD.

For OC- original creditor: One of our strongest consumer rights is the Fair Credit Billing Act and TILA- Truth in Lending. These law allows you to question a balance and have the debt proven to you. Not only do you need to verify the dollar amount but you need to check to dates of opening, last activity and last payment. One of the most common errors in credit reports are debts reported inaccurately by OC and CA. Make sure they prove to you the debt is due down to the last penny. Pay attention to the fees and penalties they assess. Most states have a usury law which means the debt can only be charges fees and interest according to that state's law. Find your state laws here.

Have you tried to restrictively negotiate the debt?

Why would anyone want to pay an old debt once it has been charged off? Well, several reasons but not without using leverage to obtain the best results. Once a debt is charged off to profit and loss it will never go back to current, so paying it will do nothing but turn it into a paid charge off. Does that benefit you? No. What does benefit you is restrictively negotiating that old debt. If the debt is not expired then there are several things you should attempt. First, attempt to get the agreement in writing that the bad marks will be deleted from your credit report upon payment. If they agree, great! GET IT IN WRITING! Before you attempt to settle any debt be sure to verify it to the Credit Reporting Agency first then use a VOD to make sure it is accurate. If so, use a restrictive endorsement to pay it.

Never EVER take a collectors word. They will be laughing all the way to the bank. Second, attempt to reduce the debt to 30-40 cents on the dollar and work your way up to 50-60 percent if need be. Start out very low. Again, get it in writing if they agree before you pay it. Thirdly, write up an agreement that includes all the above and put a confidentiality clause in there. It protects you further from the debt being reported because now the terms are confidential and if they reveal the payoff to the credit bureaus, they have violated the confidentiality clause.

Is there fraud involved or billing errors.

Be sure to check all old statements and review the account for fraud. If there is fraud involved, you are not liable for the charges. Use all of these thoughts as tools to give you more ideas to make a case and argue for a good settlement. These are all areas you need to consider before you communicate. Especially be careful of putting promises in writing and signing those letters. That will be new evidence that you intended to pay.

Banks and Debt Collectors Are the BIGGEST Crooks!

If you don’t already know, I’ll be the first to tell you that the banks, finance companies, bill collectors and credit card companies are the BIGGEST crooks in the world. If you don’t protect your rights or know the secrets of the debt collection business you will pay thousands of hard-earned dollars interest and fees to debt collectors. You do not owe third party debt collectors one penny!

You need to invest some time to become an informed consumer. You need to learn how protect your rights. We have the best insider credit secrets book in the industry published by the Consumer Education Group. This book is used by the rich and wealthy. This book could change your life forever! For more information about "The Credit Secrets Bible" home study course CLICK HERE.

For More information or to contact a Debt Collector Defense Specialist CLICK HERE.

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