Christian Debt Recovery

Credit Card Debt Lawyers In Ga

April 28th, 2008 |

Author: Gavin

Junk Debt and You

JUNK DEBT AND YOU

Junk Debt buyers are a group of investors, attorneys, speculators that make offers to banks, credit card companies and anyone that has a significant number of customers on their books that still owe old debt.

Now we know that certain debt such as credit cards, gas cards and most store merchant cards are categorized as “open end debt” by the Truth in Lending Act. How does all of this affect your daily life? Well, read on my friend and you will get a lesson in economics that you might, not have never known.

When we talk about “open end debt” we are talking about those types of accounts where you never know what the monthly payment will be. For instance, you might charge ($50.75) one month and the next month you might charge ($33.56).. Thus the term open end debt is what it says.

Now, here is how it enters into your daily life and how these junk debt buyer’s get into your life. Open end debt has a statute of limitations. This mean there is a specific time period as to how long this debt can be legally collected. In, Florida the SOL spells out exactly (4) years from the time that a debt was first late and never got caught up.

Other states have different statutes. But every state, none the less does have laws on the books regarding how long this type of debt can legally be collected on. Here is where the junk debt buyers “circle for blood”.

Most of these entities are comprised of attorneys that fully understand the law. For instance if you are sued for collection on a debt that has survived the statute of limitations, your ONLY defense is that you must appear and defend yourself to the courts by referring to that particular debt as “time barred by statute”. IF, you fail to appear, look what happens. Here is a debt that you legally do not owe, yet this junk debt buyer that bought this debt for pennies on the dollar, wins a default judgment against you. So, by not showing up, these sharks are awarded (100 cents) on the dollar for something that they only paid pennies for. Example $5,000.00 debt purchased for $150.00 is awarded a judgment for $5,000.00 because you failed to appear and defend yourself.

Even though the law is on your side, you still have to show up in court. Now, another action comes into play here. Once that junk debt buyer has purchased this debt, they know that you most probably do not have representation in court. After all, you don’t have enough money to pay the bill, so how will you get money to pay an attorney. Here is their ploy.

You get a letter written on an attorney’s stationery. It goes something like this. “Hello, we have purchased this debt of $5,000.00, which you owe to ABC Appliances. In an effort to help you through this difficult time in your life, we are willing to accept $2,500 as a gesture of helping you. IF, you remit your check in the amount of $2,500 today, we will consider this account as “PAID IN FULL” and notify all credit reporting agencies that this account has been settled”.

Wow, what a deal. First of, you are deprived of your rights under the Fair Debt Collection Practices Act and now you are given a chance to pay $2,500 of a debt that you legally do not owe. Remember, when bank robbers are not caught, they are provided the use of the Statute of Limitations. In other words, if they stay free until the statutes have expired, they cannot be prosecuted.

Your consumer debt follows this same logic. Now that you know some of your debt might not be legally collectible, what are you going to do about it? Well, many of these answers are provided on our website www.yurcredit.com

About the Author

Regis Sauger is a licensed Mortgage Broker in Florida, an author, lecturer on credit awareness. He have conducted seminars for underwriters, attorneys, mortgage lenders, realtors and the general public

http://getoutofcreditprison.com

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