2 ms·

For trading debt I would certainly hope that the actual contracts under which the debt was agreed where included. Yes that would be difficult, but it ought to b

by KayEss 10y ago

For trading debt I would certainly hope that the actual contracts under which the debt was agreed where included. Yes that would be difficult, but it ought to be a minimum requirement.

bko 10y ago
The problem is that this debt is for very small amounts, often a few hundred dollars/thousand dollars traded for pennies on the dollar. This is a risk the seller/buyer is willing to take since the cost is so low and it isn't even worth taking the time to review the contract in depth for such a small payout.
- bayesian_horse 10y ago
  But because these cases aren't reviewed, debt is often created out of nothing. For example if the debt has expired or was even paid, the debt changes hands, and they file a law suit somewhere, there is the real chance the debt is brought back to life in full. And if it doesn't work that time, the debt is just sold off to the next collector to try it again.
  - bko 10y ago
    Yes, he spoke about "zombie debt" in his segment. "Brought back from the dead" is true only if it was dismissed or past the statute of limitations for collection. It's not "brought back from the dead" if you had collectors calling and then they stopped calling and now they continue calling. You still owe that money and you're responsible. Do you ever wonder why somebody would extend you a 30 day unsecured 0% interest loan (credit card)? Or a 15-25% interest unsecured rolling loan to someone with little or no credit history? You can choose to make policies that make it harder for creditors, but you can't pretend that won't impact the borrowing rate or the access of credit to many Americans. The idea that you can't buy and sell receivables seems silly. I agree that some of the reasons people collect debt is unfortunate and unjust. But people need to be responsible and we need reasonable laws that prevent harassment.
    - bayesian_horse 10y ago
      Debt should be resellable, but only with clear protection of both parties. That's impossible for "cents on the dollar" on a spreadsheet. At that point it's hardly even a benefit for the original creditor. In many cases, creditors should be more picky about whom they lend money too. Especially if they can't afford ethical collection the question becomes: Should this company even be giving credit?
- st3v3r 10y ago
  If it's not worth taking the time to ensure the most basic of due diligence is taken, then you shouldn't be able to contact anyone about the debt.

by KayEss 10y ago

For trading debt I would certainly hope that the actual contracts under which the debt was agreed where included. Yes that would be difficult, but it ought to be a minimum requirement.

bko 10y ago

The problem is that this debt is for very small amounts, often a few hundred dollars/thousand dollars traded for pennies on the dollar. This is a risk the seller/buyer is willing to take since the cost is so low and it isn't even worth taking the time to review the contract in depth for such a small payout.

bayesian_horse 10y ago
But because these cases aren't reviewed, debt is often created out of nothing. For example if the debt has expired or was even paid, the debt changes hands, and they file a law suit somewhere, there is the real chance the debt is brought back to life in full. And if it doesn't work that time, the debt is just sold off to the next collector to try it again.
- bko 10y ago
  Yes, he spoke about "zombie debt" in his segment. "Brought back from the dead" is true only if it was dismissed or past the statute of limitations for collection. It's not "brought back from the dead" if you had collectors calling and then they stopped calling and now they continue calling. You still owe that money and you're responsible. Do you ever wonder why somebody would extend you a 30 day unsecured 0% interest loan (credit card)? Or a 15-25% interest unsecured rolling loan to someone with little or no credit history? You can choose to make policies that make it harder for creditors, but you can't pretend that won't impact the borrowing rate or the access of credit to many Americans. The idea that you can't buy and sell receivables seems silly. I agree that some of the reasons people collect debt is unfortunate and unjust. But people need to be responsible and we need reasonable laws that prevent harassment.
  - bayesian_horse 10y ago
    Debt should be resellable, but only with clear protection of both parties. That's impossible for "cents on the dollar" on a spreadsheet. At that point it's hardly even a benefit for the original creditor. In many cases, creditors should be more picky about whom they lend money too. Especially if they can't afford ethical collection the question becomes: Should this company even be giving credit?
st3v3r 10y ago
If it's not worth taking the time to ensure the most basic of due diligence is taken, then you shouldn't be able to contact anyone about the debt.