Debt collection firm settles lawsuit for millions

[harvey007]

Source: Baltimore Sun

About 3,500 people will have about $10 million in personal debt forgiven by a collection agency, thanks to a settlement in federal court Friday that resolved a lawsuit over the agency's right to sue debtors in Maryland.

As part of the settlement, the agency will pay $2,000 to each of the people involved in the lawsuit, a total of $7 million, according to filings in U.S. District Court in Baltimore. The payment is in addition to an average $2,800 in debt that will be erased for each plaintiff.

Read more: http://www.baltimoresun.com/business/bs-bz-debtors-settlement-lvnv-20110909,0,6904431.story

[hobbit709]

1. Bottom feeders.

They buy these debts for a nickel on the dollar and then demand the dollar from the debtors.

[izquierdista]

2. I'd say that worked out well for them

Buy for a nickel, then pay a dime in a settlement later. With that business model, they should own Righthaven in no time. :rofl:

[wryter2000]

3. Spew alert

:rofl:

I wish we still had the DUzys.

[Tempest]

4. Righthaven won't be around much longer

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=102x4989616

[quakerboy]

5. Makes me wonder

How hard is it to qualify as a debt collection agency, and do you have to be a qualified debt collection agency to buy debt?

Also, in related wondering, it possible to buy your own debt? And maybe your family members. And if you are feeling a bit vengeful, the debt of that one neighbor who always plays his music too loud?

[anamandujano]

6. You may be on to something.

nt

[Maine-ah]

7. very interesting thought

I found this, but it's from 2008.



Currently there is no specific licensing requirement from the government for becoming a debt collector. As a result, there is no single federally mandated course requirement. Although the IAPDA training course is highly respected in the industry and conforms to the Uniform Debt-Management Services Act finalized draft. The Uniform Debt-Management Services Act was proposed in order to apply a uniform set of rules to govern the debt collection services field in all fifty states. Some states, such as Delaware, Colorado, Utah and Rhode Island have adopted portions of the Act it into legislation.

Read more at Suite101: How to Become a Debt Collector: Education and Licensing Requirements | Suite101.com http://feliciaawilliams.suite101.com/how-to-become-a-debt-collector-a60648#ixzz1XW1FmvnQ

[quakerboy]

8. I would love to

find a way to selectively buy peoples debt for pennies on the dollar, and then be able to offer them an out at a true rock bottom deal. I am sure there would be complications. But to really be in a situation to pare it down to next to nothing, to give them a chance to get out from under it, that would feel like worthwhile work.

And if you could track down and help people you actually knew that would be very personally satisfying.

[cutlassmama]

9. That's a wonderful idea! People who have lost their jobs due to layoff

disability, etc. that owe thousands could get their debts paid off for like $100.00 or something. It would be a lovely idea.