Photo Credit: Randal Clark
Over one billion contacts are made each year by debt collectors to consumers.
The contingency fees raked in by third-party debt collectors exceeds many billions of dollars.
The largest debt collector, NCO Financial which is owned by JPMorgan Chase, earns nearly $2 billion annually.
A report describes both the enormous profits in the debt collection industry and the flaws in the legal system.
Judges in Iowa estimate 85% to 90% of all collection lawsuits result in a default judgment because the consumer defendant does nothing to defend against the lawsuit.
Some debt collectors specialize in collecting debts that are uncollectible.
A debt collector in Minnesota focuses exclusively on collecting debts from dead people has admitted continuing to earn fees on debts beyond the statute of limitations.
Then still earn billions of dollars in revenue collecting these debts.
The report also documents how some debt collectors trick consumers into making a partial payment or offering so-called “zombie cards”, letting them make payments with a credit card.
Unwittingly, these partial payments result in an acknowledgment of the debt that restarts the clock on the statute of limitations.
Contact us immediately after being served with the lawsuit to determine if there are defenses.
