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Inside the Dark, Lucrative World of Consumer Debt Collection

nytimes.com

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Re: Inside the Dark, Lucrative World of Consumer Debt Collection

#201

Post by a8da6b0c91d »

learc83 wrote: post #188
michaelochurch wrote: post #182

Earlier quoted context omitted.

Can't you just offer to pay a larger deposit or several months up front? Can't you just offer the landlord occasional use of your boat and promise to pull family connections (everyone has them, no?) to get White House internships for his kids?

I'm not saying paying extra is feasible for someone without much money, but this whole comment thread was a response to one guy who basically said credit doesn't matter much if you aren't poor. Going with the implicit assumption that we're talking about someone who's making a pretty good bit of money, but who has a bad credit rating, I'm only arguing that it's not impossible to rent an apartment. I love your blog by…

I'm not rich. I make about 150 right now, which around here isn't much. I am just informing you cowed bougie woosies that your "oh noes my credit report" panics are not grounded in reality. If you pay your legit bills on time and make a solid living, credit is not a valid concern when someone is trying to fuck you. In cities like Philadelphia and Baltimore most of the households are chronically arrears on utilities. Guess what, they all have cell phones and DirectTV and cheap mortgages, and their utilities are never cut off. Mortgage originators are desperate for truly credit worthy customers.

Some dings from the racketeers might be a problem if you want to rent a $4K apartment on a $90K income, but even then I doubt it.

I almost get the sense that upper middle class nerds have no idea how most of society actually operates and how strong a position solid income puts you in.

Re: Inside the Dark, Lucrative World of Consumer Debt Collection

#202

Post by kyllo »

a8da6b0c91d wrote: post #12
delinka wrote: post #4

Earlier quoted context omitted.

In the USA: Yes, the alleged debtor can insist on proof. The bad news: If collector mails the debtor, and the debtor doesn't respond for 30 days, the collector can report the debt to the credit reporting agencies. And we all know what a pain it is to get anything corrected on a credit report.

I don't understand why people freak out so much about their credit reports. I have no idea what my credit score is and don't care. I guess it's poor people who need credit to scrape by on a regular basis? If you have a lot of cash it seems like a completely empty threat. The bank is not going to care about your $400 unpaid comcast bill when writing you a mortgage. People who have declared bankruptcy twice are getting…

That is a great way to blow tens to hundreds of thousands on interest over a lifetime.

Re: Inside the Dark, Lucrative World of Consumer Debt Collection

#203

Post by eurleif »

bequanna wrote: post #115
forca wrote: post #63

Earlier quoted context omitted.

Medical debt rankles me like nothing else. The US, supposedly the most advanced nation on Earth has the worst notion of all: health care for profit. Simply evil. Health care is a basic human right. Full stop. Health care should never be based on one's ability to pay. Never. I pray I see socialised medicine in the US in my lifetime. If Hilary Clinton gets elected, the push for this will be stronger than the thin edge…

I agree, but I think there is too much at stake for too many high net-worth individuals and corporations for the US to make a change to the single-payer system. A 10% rise in taxes? That's a heck of a lot of money. The majority of the rich won't buy into it, they'll fight it tooth and nail. In my opinion, I think it depends on how well appeals for/against a single-payer system resonate with the middle class. Do they…

Would a tax that only applied to the first X dollars of income, like social security does, be feasible?

Re: Inside the Dark, Lucrative World of Consumer Debt Collection

#204

Post by refurb »

michaelochurch wrote: post #180
refurb wrote: post #151

Earlier quoted context omitted.

Evil! The hyperbole is overflowing! It is true that socialized medicine puts an end to the financial hardship imposed on individuals, but it also brings other problems into the picture, namely rationed healthcare. I've experienced it myself. That's why you have so many Canadians coming to the US when they get really sick.

Healthcare is already rationed in the U.S. It's rationed everywhere, by definition, because there isn't (to my knowledge, anyway) any country where the (price-agnostic) demand for resources isn't more than the supply. It's just rationed in an inhumane, stupid way in the U.S. No one from the industrialized world comes "to the U.S." because of a severe illness. Rather, people come to specific doctors for new procedures…

If the US is the country with the top notch doctors, then how to you separate "they are going to the best doctor" to "they are going to the country with the best doctor"?

Re: Inside the Dark, Lucrative World of Consumer Debt Collection

#205

Post by a8da6b0c91d »

FireBeyond wrote: post #198
a8da6b0c91d wrote: post #12

Earlier quoted context omitted.

I don't understand why people freak out so much about their credit reports. I have no idea what my credit score is and don't care. I guess it's poor people who need credit to scrape by on a regular basis? If you have a lot of cash it seems like a completely empty threat. The bank is not going to care about your $400 unpaid comcast bill when writing you a mortgage. People who have declared bankruptcy twice are getting…

LOL... the last time I looked at a mortgage, despite my six digit income and all other things, I absolutely promise you that the bank -did- insist I resolve several unpaid debts that were listed on my credit score (probably four or five, totaling <$3,000 between them).

I don't believe you got hit with four or five scammy $700 charges. You are apparently chronically delinquent on accounts, which is not what I'm talking about.

Re: Inside the Dark, Lucrative World of Consumer Debt Collection

#206

Post by rahimnathwani »

kazinator wrote: post #98
eli wrote: post #56

Earlier quoted context omitted.

OK, I agree that part is a little ridiculous but only in the "why bother" sense.

It's probably the same thing like gambling to those people. Or penny stock trading. The reasoning is probably like this: at 1/1200 rate, I can cheaply buy a whole crapload of debt. And based on the time-honored principle "if you throw enough shit at a wall, some of it will stick", if just a small percentage of those debts pays out, I will make a profit even if the rest are junk.

It's not gambling if the law of large numbers is on your side. It's more like running a casino, where the loss on a single transaction could be high, but overall you're almost certain to make money.

Re: Inside the Dark, Lucrative World of Consumer Debt Collection

#207

Post by einrealist »

blhack wrote: post #34

This is one of the most unbelievable articles I've ever read. If you didn't read it all the way through, do so over lunch or something; it's amazing. The idea of "millions of dollars" worth of debt being traded for around on thumb drives, and that all those thumb drives really contain are excel spreadsheets is mind boggling . Those people in those spreadsheets are real people , and they're being completely duhumanize…

This should be regulated. If debt can be bought for 1/12 of the actual debt, that debt should be cut to that 1/12 as well!

Re: Inside the Dark, Lucrative World of Consumer Debt Collection

#208

Post by osamet67 »

blhack wrote: post #34

This is one of the most unbelievable articles I've ever read. If you didn't read it all the way through, do so over lunch or something; it's amazing. The idea of "millions of dollars" worth of debt being traded for around on thumb drives, and that all those thumb drives really contain are excel spreadsheets is mind boggling . Those people in those spreadsheets are real people , and they're being completely duhumanize…

Horrifying and accurate. The way people's lives are handed over to questionable businesses is nothing short of crazy.

Re: Inside the Dark, Lucrative World of Consumer Debt Collection

#209

Post by danboarder »

CMCDragonkai wrote: post #162
downandout wrote: post #103

Earlier quoted context omitted.

>Also the fact that debt is being purchased for 1/12 of a penny is completely just...unbelievable. It seems that the particular deal you're referring to was a fraudulent transaction. It had been sold (at least) twice, and having paid $41K for $50M worth of debt, the agency lost money on it. It doesn't sound like legitimate deals are offered this cheaply. However, you are right that insanity runs rampant in the indust…

That's really smart. Do banks have some way of detecting if the buyer isn't associated with the debtor?

Your observation reminds me of the http://rollingjubilee.org project that buys up consumer debt for pennies on the dollar and then simply cancels it.

Re: Inside the Dark, Lucrative World of Consumer Debt Collection

#210

Post by jeangenie »

opendais wrote: post #58
shkkmo wrote: post #53

Earlier quoted context omitted.

What about a non-profit that purchases this debt and then targets the debtors with the tools and support to get them back on their feet to the point where they CAN pay off the debt?

http://rollingjubilee.org/ ? That is likely close enough.

Unfortunately they are no longer accepting donations.
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