Hacker News Board Hacker News, browsed like a classic message board
Live data from Hacker News

Debt Collectors Are Transforming the Business of State Courts

pewtrusts.org

Post reply on HN
Print view View original

21–30 of 182 posts

Re: Debt Collectors Are Transforming the Business of State Courts

#21

Post by Ensorceled »

rayiner wrote: post #16
WD-42 wrote: post #3

Imagine working for a company that buys up poor people’s debt in order to sue them.

Okay, I'm imagining it. So what? There is a debate to be had about what sorts of protections we want to provide to debtors. But that's separate and apart from the existence of companies that specialize in debt collection. The latter is simply an example of economic specialization. The problem everyone has getting their mind around debt collection is that they focus on the after-the-fact situation, instead of the whol…

You say all of this as if extending credit to high risk borrowers, who can't financially afford to carry that debt, is a good thing.

Re: Debt Collectors Are Transforming the Business of State Courts

#22

Post by londons_explore »

rayiner wrote: post #16
WD-42 wrote: post #3

Imagine working for a company that buys up poor people’s debt in order to sue them.

Okay, I'm imagining it. So what? There is a debate to be had about what sorts of protections we want to provide to debtors. But that's separate and apart from the existence of companies that specialize in debt collection. The latter is simply an example of economic specialization. The problem everyone has getting their mind around debt collection is that they focus on the after-the-fact situation, instead of the whol…

Hypothetically, what would the world look like if we made all debts dischargeable by bankruptcy, and bankrupcy a process so simple you could just text a number and be done in 15 minutes?

A bankruptcy would simply automatically put all your assets up for a same-day auction. Any unlisted items would be auctioned as a lump, for anyone willing to research what you actually owned to play 'Storage Wars' with. Anyone could bid on those assets (including your friends buying your stuff to give back to you). All proceeds of auction would be claimable by anyone you owed a debt to in a fully automated manner.

In such a world, any time you woke up in the morning and decided the auction value of your assets was below your debts, you could text the number, re-buy things you really cared about for probably cents on the dollar (nobody wants your dirty laundry), and carry on your day worry free.

Re: Debt Collectors Are Transforming the Business of State Courts

#23

Post by justAnotherNET »

rayiner wrote: post #16
WD-42 wrote: post #3

Imagine working for a company that buys up poor people’s debt in order to sue them.

Okay, I'm imagining it. So what? There is a debate to be had about what sorts of protections we want to provide to debtors. But that's separate and apart from the existence of companies that specialize in debt collection. The latter is simply an example of economic specialization. The problem everyone has getting their mind around debt collection is that they focus on the after-the-fact situation, instead of the whol…

Student loans drying up would be fantastic. Giving everyone with a pulse up to $100k to go to high school 2.0 was a mistake.

Re: Debt Collectors Are Transforming the Business of State Courts

#24

Post by WD-42 »

rayiner wrote: post #16
WD-42 wrote: post #3

Imagine working for a company that buys up poor people’s debt in order to sue them.

Okay, I'm imagining it. So what? There is a debate to be had about what sorts of protections we want to provide to debtors. But that's separate and apart from the existence of companies that specialize in debt collection. The latter is simply an example of economic specialization. The problem everyone has getting their mind around debt collection is that they focus on the after-the-fact situation, instead of the whol…

The article states that the majority of cases are for amounts less than $5k. We're not talking about student loans or mortgages here. This is the consumer finance industry. Predatory loans, high interest credit cards (but the perks!) and such. The companies behind these products thrive of keeping people in a cycle of debt. They aren't helping anyone and should probably be regulated out of existence.

Re: Debt Collectors Are Transforming the Business of State Courts

#25

Post by rayhendricks »

rayiner wrote: post #16
WD-42 wrote: post #3

Imagine working for a company that buys up poor people’s debt in order to sue them.

Okay, I'm imagining it. So what? There is a debate to be had about what sorts of protections we want to provide to debtors. But that's separate and apart from the existence of companies that specialize in debt collection. The latter is simply an example of economic specialization. The problem everyone has getting their mind around debt collection is that they focus on the after-the-fact situation, instead of the whol…

If student loans were suddenly unavailable then universities would have to rein in out of control costs and Maybe get rid of sports and bs admin staff.

The only reason they change that much is due to the ability of loans.

Re: Debt Collectors Are Transforming the Business of State Courts

#26

Post by refurb »

brenden2 wrote: post #2

It bums me out that people who need the most help in life receive the least

What do you mean "receive the least"? Pretty much all the social programs we have target the poor, not the rich. The poor are the ones that receive the most.

Re: Debt Collectors Are Transforming the Business of State Courts

#27

Post by JamesBarney »

SpicyLemonZest wrote: post #11
D13Fd wrote: post #7

It’s not surprising that the percentage of debt claims has doubled when, as the article notes, consumer debt levels tripled over the same period.

It's not surprising when you think about it, but it's still an important problem to think about. It has the potential to cause some problems if state courts become seen as a vehicle for debt collectors more than an authority for righting wrongs.

I think we all agree you should be able to collect on a debt. (if you can't it's not a debt)

And I imagine most of us agree collection should be pursuant to due process.

I don't really see any other options.

Re: Debt Collectors Are Transforming the Business of State Courts

#28

Post by black_puppydog »

rayhendricks wrote: post #25
rayiner wrote: post #16

Earlier quoted context omitted.

Okay, I'm imagining it. So what? There is a debate to be had about what sorts of protections we want to provide to debtors. But that's separate and apart from the existence of companies that specialize in debt collection. The latter is simply an example of economic specialization. The problem everyone has getting their mind around debt collection is that they focus on the after-the-fact situation, instead of the whol…

If student loans were suddenly unavailable then universities would have to rein in out of control costs and Maybe get rid of sports and bs admin staff. The only reason they change that much is due to the ability of loans.

Same goes for books. Your prices for textbooks over there are hilarious. They're priced purely based on just how much you can milk the students, or rather whoever finances them.

Re: Debt Collectors Are Transforming the Business of State Courts

#29

Post by vkou »

londons_explore wrote: post #22
rayiner wrote: post #16

Earlier quoted context omitted.

Okay, I'm imagining it. So what? There is a debate to be had about what sorts of protections we want to provide to debtors. But that's separate and apart from the existence of companies that specialize in debt collection. The latter is simply an example of economic specialization. The problem everyone has getting their mind around debt collection is that they focus on the after-the-fact situation, instead of the whol…

Hypothetically, what would the world look like if we made all debts dischargeable by bankruptcy, and bankrupcy a process so simple you could just text a number and be done in 15 minutes? A bankruptcy would simply automatically put all your assets up for a same-day auction. Any unlisted items would be auctioned as a lump, for anyone willing to research what you actually owned to play 'Storage Wars' with. Anyone could…

We'd have less debt, which is bad for the economy, but good for individuals.

Re: Debt Collectors Are Transforming the Business of State Courts

#30

Post by ashtonkem »

rayhendricks wrote: post #25
rayiner wrote: post #16

Earlier quoted context omitted.

Okay, I'm imagining it. So what? There is a debate to be had about what sorts of protections we want to provide to debtors. But that's separate and apart from the existence of companies that specialize in debt collection. The latter is simply an example of economic specialization. The problem everyone has getting their mind around debt collection is that they focus on the after-the-fact situation, instead of the whol…

If student loans were suddenly unavailable then universities would have to rein in out of control costs and Maybe get rid of sports and bs admin staff. The only reason they change that much is due to the ability of loans.

Both statements can be true: eliminating debt collection would massively curtail the availability of credit, and excessive credit availability practically any motive to curtail costs.
Post reply on HN