Comments on: Debt Collector’s Getting Their Day In Court http://masteryourcard.com/blog/2008/06/18/debt-collectors-getting-their-day-in-court/ The best Credit Card Debt Blog online Thu, 02 Feb 2012 13:31:13 +1100 http://wordpress.org/?v=abc hourly 1 By: KL http://masteryourcard.com/blog/2008/06/18/debt-collectors-getting-their-day-in-court/comment-page-1/#comment-2833 KL Wed, 25 Jun 2008 20:23:31 +0000 http://masteryourcard.com/blog/2008/06/18/debt-collectors-getting-their-day-in-court/#comment-2833 I do agree with you Kristy, there is a level of accountability that needs to be present when you are a lender especially a sub-prime lender. But on another note a consumer needs to be accountable to do thier own research before entering into a contractual obligation. Too often now with both lenders and consumers you see a finger pointing to the other and taking no personal accountabilitY for their own actions. People (like the McDonalds woman) are using lack of commonsense as and excuse, and the same goes for an arguement for a business who says "we didn't know any better". Let the consumer file a chapter 7 and the creditor file a chapter 11 like you said....that is what they are there for. Hopefully lesson learned by that point. I do agree with you Kristy, there is a level of accountability that needs to be present when you are a lender especially a sub-prime lender. But on another note a consumer needs to be accountable to do thier own research before entering into a contractual obligation. Too often now with both lenders and consumers you see a finger pointing to the other and taking no personal accountabilitY for their own actions. People (like the McDonalds woman) are using lack of commonsense as and excuse, and the same goes for an arguement for a business who says “we didn’t know any better”. Let the consumer file a chapter 7 and the creditor file a chapter 11 like you said….that is what they are there for. Hopefully lesson learned by that point.

]]> By: P L http://masteryourcard.com/blog/2008/06/18/debt-collectors-getting-their-day-in-court/comment-page-1/#comment-2638 P L Sat, 21 Jun 2008 12:54:54 +0000 http://masteryourcard.com/blog/2008/06/18/debt-collectors-getting-their-day-in-court/#comment-2638 Chap 13 isn't like Chap 11 or 7. In Chap 13 you pay back the debt but the court protects you from creditor harassment. The court handles payment distribution so it's very much like a credit counseling service only the court has the authority to set payments rather than negotiate them. There's no bail out - you still pay the debt. Chap 13 isn’t like Chap 11 or 7. In Chap 13 you pay back the debt but the court protects you from creditor harassment. The court handles payment distribution so it’s very much like a credit counseling service only the court has the authority to set payments rather than negotiate them. There’s no bail out – you still pay the debt.

]]> By: Kristy http://masteryourcard.com/blog/2008/06/18/debt-collectors-getting-their-day-in-court/comment-page-1/#comment-2637 Kristy Sat, 21 Jun 2008 05:20:24 +0000 http://masteryourcard.com/blog/2008/06/18/debt-collectors-getting-their-day-in-court/#comment-2637 No, I'm talking something different than bankruptcy. They also have Chapter 11 I think it is, for businesses but the government is still looking to bail lenders out of their situation. No, I’m talking something different than bankruptcy. They also have Chapter 11 I think it is, for businesses but the government is still looking to bail lenders out of their situation.

]]> By: P L http://masteryourcard.com/blog/2008/06/18/debt-collectors-getting-their-day-in-court/comment-page-1/#comment-2633 P L Fri, 20 Jun 2008 23:33:54 +0000 http://masteryourcard.com/blog/2008/06/18/debt-collectors-getting-their-day-in-court/#comment-2633 They have that already - it's called Chapter 13 bankruptcy. What we really need is a better way to hold collection agencies accountable. If getting it wrong can have a seriously negative effect to the agency's bottom line there would be a lot fewer 'mistakes' and a lot less litigation. In professional collection cases I believe legal costs plus expenses should be an automatic award if the defendant successfully defends or the suit is dropped. Make going to court expensive for the frivolous or ill prepared cases and they will stop bringing them. Proving a debt and payment history is little more than record keeping so legitimate cases shouldn't have much of a problem successfully prosecuting the real deadbeats. Binding arbitration needs to die a horrible death yesterday which would open the way to impartial settlements in the courts (and probably still fewer of them - it's better for a creditor to work something out with the debtor when they don't have a virtually guaranteed win as with a creditor using an arbiter). Legitimately insolvent debtors from some unforeseen cause would then have a greater chance of working out a reasonable settlement without needing a service or seeking Chap 13 protection. They have that already – it’s called Chapter 13 bankruptcy.

What we really need is a better way to hold collection agencies accountable. If getting it wrong can have a seriously negative effect to the agency’s bottom line there would be a lot fewer ‘mistakes’ and a lot less litigation. In professional collection cases I believe legal costs plus expenses should be an automatic award if the defendant successfully defends or the suit is dropped. Make going to court expensive for the frivolous or ill prepared cases and they will stop bringing them.

Proving a debt and payment history is little more than record keeping so legitimate cases shouldn’t have much of a problem successfully prosecuting the real deadbeats. Binding arbitration needs to die a horrible death yesterday which would open the way to impartial settlements in the courts (and probably still fewer of them – it’s better for a creditor to work something out with the debtor when they don’t have a virtually guaranteed win as with a creditor using an arbiter). Legitimately insolvent debtors from some unforeseen cause would then have a greater chance of working out a reasonable settlement without needing a service or seeking Chap 13 protection.

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