Why is it that debt collection agencies feel like litigation is needed? I have helped over 4.5 million people settle their accounts without ever using litigation. What the debt buying and collection industry needs to realize, is that most people want to pay their debts – and will if given an opportunity. When a customer is threatened with litigation they begin to panic, often times leading to bankruptcy. Once a bankruptcy occurs the customer ends up in FICO hell and all of the customer’s other creditors suffer the consequence caused by one litigation happy debt buyer.
The empirical data now conclusively proves the non-litigation collection model is more profitable than the litigation collection model. It is also safer and more profitable for the banks who sell loans. It is safer because it creates no bank exposure or risk for improper litigation by the purchaser of their debt and it is more profitable because non-litigation debt buyers can afford to pay the bank a higher price for the same distressed loans.
What is the true way to help someone who is deep in debt? It isn’t to sue them into oblivion but rather to offer them a way out of their predicament. This way out can be accomplished by helping them resolve their other obligations; helping them find new/better employment or providing them needed social services. Sometimes it is simple as just listening to their plight and offering them patient understanding.
The entire robo-suing; inadequate documentation, sewer service, mistaken identity problem involving 10 million lawsuits a year could be avoided simply and easily. If debt selling banks were persuaded not to sell loans to debt buyers who utilized a litigation collection model, these ills would be stopped overnight. This simple solution would end the living nightmare now suffered by more than 30 million American families.
banks can simply add this provision to their Loan Sale Agreements. All buyers executing a Loan Sale Agreement containing such a provision would be contractually obligated to refrain from litigating or threatening litigation.
some current buyer would refuse to purchase with such a provision and other current buyers would expect a price discount because they woudl not be able to sue. In both instances, any inventory not acquired by current buyers would be quicly snapped up by other purchasors who would be willing to comply with these contractual provisions.
Such a resolution would obviate the necessity of legislation or regulation as the matter woudl have been taken care of under the contract between a willing seller and a willing buyer. there would be no constitutional question regarding the restricting of law suits nor would there be any delay in implementation. All that would be required is the cooperation of the selling banks which could be induced readily with some Safe-Harbor language for banks that follow this protocol.
BillBartmann
1Why is it that debt collection agencies feel like litigation is needed? I have helped over 4.5 million people settle their accounts without ever using litigation. What the debt buying and collection industry needs to realize, is that most people want to pay their debts – and will if given an opportunity. When a customer is threatened with litigation they begin to panic, often times leading to bankruptcy. Once a bankruptcy occurs the customer ends up in FICO hell and all of the customer’s other creditors suffer the consequence caused by one litigation happy debt buyer. The empirical data now conclusively proves the non-litigation collection model is more profitable than the litigation collection model. It is also safer and more profitable for the banks who sell loans. It is safer because it creates no bank exposure or risk for improper litigation by the purchaser of their debt and it is more profitable because non-litigation debt buyers can afford to pay the bank a higher price for the same distressed loans. What is the true way to help someone who is deep in debt? It isn’t to sue them into oblivion but rather to offer them a way out of their predicament. This way out can be accomplished by helping them resolve their other obligations; helping them find new/better employment or providing them needed social services. Sometimes it is simple as just listening to their plight and offering them patient understanding. The entire robo-suing; inadequate documentation, sewer service, mistaken identity problem involving 10 million lawsuits a year could be avoided simply and easily. If debt selling banks were persuaded not to sell loans to debt buyers who utilized a litigation collection model, these ills would be stopped overnight. This simple solution would end the living nightmare now suffered by more than 30 million American families.
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BillBartmann
2
banks can simply add this provision to their Loan Sale Agreements. All buyers executing a Loan Sale Agreement containing such a provision would be contractually obligated to refrain from litigating or threatening litigation. some current buyer would refuse to purchase with such a provision and other current buyers would expect a price discount because they woudl not be able to sue. In both instances, any inventory not acquired by current buyers would be quicly snapped up by other purchasors who would be willing to comply with these contractual provisions. Such a resolution would obviate the necessity of legislation or regulation as the matter woudl have been taken care of under the contract between a willing seller and a willing buyer. there would be no constitutional question regarding the restricting of law suits nor would there be any delay in implementation. All that would be required is the cooperation of the selling banks which could be induced readily with some Safe-Harbor language for banks that follow this protocol.
View this comment in the discussion thread