Quote:
Originally Posted by Relentless
Most idiots won't fight it, but I'd be interested to see a debtor bring them to court and litigate it to the full extent of the law.
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Credit card companies do it all the time. Once someone stops paying they typically run the debit up at the very least 50% higher in late fees and so on.. So if you owed 2k for instance they will run it up to $3k in fees and high interest rates before "writing if off".
They then use shady lawyers to sue in local courts. A lot of these law firms are nothing more than fronts for debit collection companies that go for default judgments. Once they get that default judgment then eventually they are gonna get paid.
However the tick to getting away with the outrageous interest is the fact the transfer the debit to the law firm/debit collector and then it becomes a solid number that they can claim has no fees or interest as it was the former debit total. The only way the consumer can get the full details is if they do a debit validation early on in the process because the law is against the consumer once that time passes. (usually by the time they are getting sued it's too late")
Typically if people are defaulting on their loans they are gonna stop taking calls and start ignoring the tons of debit collection mail they get. The credit card companies & debit collectors use this to their advantage to get the money via the court system as a default.
Added to this the CC companies get to use it all as a tax write off as being a loss..
The whole system is nothing more than a scam and it's the reason the CC companies push harder to get people whom they know can't pay than to get "solid" customers with good credit. Simply put they make more money giving credit card to people that they know can't pay vs giving them to responsible people.