Junk debt and You

Debt buyers do not want are a group of investors, lawyers, the speculators who are bidding to banks, credit card companies and anyone with a significant number of customers on their books that I have still old debt .

Now we know that for certain obligations, such as credit cards, gas cards and business cards, most customers are classified as "open end of the debt" to the Truth in Lending Act How does this affect your daily life? Well, read on my friend andget a lesson in economics that could not have ever known.

When we say "to open debt" we are talking about the types of accounts you never know what your monthly payment will be. For example, you can upload ($ 50.75) per month and next month could be charged ($ 33.56) .. So the open end of period debt is what it says.

Now, here's how you get in your daily life and how the junk debt buyer to come into your life. Open End Debthave a prescription. This means that there is a specific time period for the duration of this debt can be legally harvested. In Florida, SOL exactly accurate (4) years from the time a debt for the first time in the afternoon and was not involved.

Other states have different statutes. But every state except, or that do not have laws on the books of the duration of this type of debt can be legally harvested. This is where the buyers of junk debt circleblood. "

Most of these entities are composed of lawyers who understand the law. For example, if you are sued to collect a debt that has survived the prescription, your only defense is that you must appear and defend in the courts by referring to that particular debt as a "time limitation by law." IF you miss it, see what happens. Here is a debt that does not legally, but the junk debt buyerbought this debt for pennies on the dollar, won a ruling against them by default. Therefore, do not appear, these sharks are granted (100 U.S. cents) per dollar for something that only a few cents. Example debt of $ 5,000.00 to buy for $ 150.00 and $ 5,000.00 is qualified, because it was presented and defended.

Although the law is on your side, you still have to appear before the court. Now, here comes another action. Once the junk debtthe buyer has purchased this debt, they know they probably do not have legal representation. After all, you do not have enough money to pay the bill, as you have the money to afford a lawyer. Here's their ploy.

You will receive a letter written on letterhead of an attorney. It 's more or less well. "Hello, we bought the debt of € 5,000.00, which is due to ABC Blanca. In an attempt to help overcome this difficult moment of his life, we are willing toaccept $ 2,500 as a gesture to help. If you sent a check for the amount of $ 2,500 today, we will consider this account as "Paid In Full" and notify all credit bureaus that this account is resolved. "

Wow, what a deal. First, they are deprived of their rights under the Fair Debt Collection Practices Act and now gives the option of paying $ 2.500 for a debt that is not legally owe. Remember, when you're bank robbersnot caught, given the use of recipes. In other words, if you remain free until the laws are enforced, can not be processed.

Your consumer debt follows the same logic. Now that you know some of your debt collection can not be legally, what are you doing? Well, many of these answers are provided on our website thecreditprofessors.com