Many consumers do not understand their rights when it comes to unpaid credit card debt and debt collection companies often take advantage of that lack of knowledge. If you have credit card debt and are dealing with telephone calls or letters from a credit collection agency, you should seriously consider retaining councel.
What debt collectors hope you don’t know
The three major forces in debt collection include Midland Funding LLC, CACH LLC and Portfolio Recovery Associates LLC. These companies often buy debt for pennies on the dollar from credit card companies. They buy this debt in many cases after a credit card company has written off your debt. Their goal is to get you to either pay it off in full or to arrange payments. However, if you have not made a payment in five years, the statute of limitations may have expired.
The approach of the big three
Keep in mind, debt collection companies only make money when you make a payment. They will do whatever is necessary to collect that money including threatening to take you to court. Some of the claims against the “big three” include:
- Portfolio Recovery Associates LLC – The Consumer Financial Protection Bureau reported more than 800 complaints against this company between July 2013 and May of 2014. In many cases, this company continues to harass debtors with phone calls, threatens them with lawsuits and in some cases they have even attempted to collect debts that were already paid.
- Midland Funding LLC – has also had a number of complaints filed against them. In some cases, they are contacting borrowers and threatening lawsuits even though the debt is past the statutes of limitations. Additionally, oftentimes Midland Funding has not been able to produce documentation showing that a debtor actually owes money.
- CACH, LLC – in many cases, this company will not contact debtors before they go to court and file a lawsuit. Their hope is that the debtor will not appear in court and therefore they will get an automatic judgment. Michael Metzner, P.A can help ensure you do not fall into this trap; you should never ignore a summons.