Exploring the Debt Collection Industry

July 2, 2009

Join Us on New Consumer Forums!

Over the past year or so we’ve taken to using a forum format instead of the blog, so we’ve decided to close the blog to further comments. Instead, please come join the forum discussions about arbitration and debt collection:

Arbitration Justice

Debt Collectors Exposed

We look forward to seeing you there!

June 6, 2008

Arbitration Forum

Filed under: Arbitration Justice,Arbitration Justice — budhibbs @ 4:10 pm

It’s happening. The smell of arbitration is beginning to cause nostrils to twitch across the country. Business Week has a huge article on the subject this week, and ABC News just took on the NAF. We’ve been tinkering with the ArbitrationJustice.com website for awhile now and it’s done well in dry dock, but we need to push it out into the water and see what kind of rough seas it can handle.

And, for better or worse, we’ve added a forum. (Thanks for noticing, and no, we don’t know what we’re doing.) Who better to get it off the ground than the talented assortment of consumers, advisers and over-anxious brain power resting on this blog?

So come on over – lend your expertise, help us tweak this monster and see if we can’t put arbitration on the ropes.    Royce     http://www.arbitrationjustice.com

September 28, 2007

Major Work Exposes Arbitration!

Filed under: Arbitration Justice,Arbitration Justice — budhibbs @ 8:30 am


How Credit Card Companies Ensnare Consumers

Here’s the definitive work exposing the evils of Arbitration. Kudos to Public Citizen’s Congress Watch.  Hard copies are available for $10. Details, and a  free downloadable version can be found at http://www.citizen.org

Make Sure Your Congressperson Reads This!

June 11, 2007

The Scam of Arbitration

Filed under: Arbitration Justice — budhibbs @ 4:13 pm

The Scam of Arbitration  

Debt collectors, junk debt buyers and bottom feeders are looking to enrich themselves through arbitration claims filed with the National Arbitration Forum, Minneapolis, MN. Some of the organizations filing arbitration claims include Wolpoff & Abramson, Baltimore, MD, Collect America (CACH & CACV) Denver, CO, Mann-Bracken, Atlanta, GA ,NCO Financial Systems, Baltimore, MD and Midland Credit Management.Arbitration is an area most consumers have little or no knowledge of and the system is set up to take advantage of that. The National Arbitration Forum (NAF) is biased in favor of those who file claims because their filing fee of $250/per account is what keeps them in business.To give you an idea of how this functions, let’s use our Washington bureaucracy for an illustration: NAF is the Congressional representative writing laws. Debt buyers are the lobbyists looking for favorable results on their investments.  They write a check to the NAF, the arbitration claim is filed, the NAF pays a local lawyer to rubber stamp awards in favor of the debt buyer and just like Washington, they make a ton of money, while you get screwed. Sound familiar?The attorneys they use are from your local area (with exceptions) who are also paid a fee of $250/hour with the expectation they will handle up to six claims per hour. Do the math, does this sound ethical? The arbitrators rubber stamp their approval, many lie and sign statements that are false and perjured so they can stay on the money side of the NAF.

The arbitration process conducted by the NAF is a corrupt system of big bucks designed to screw the consumer who is mostly kept in the dark about the process and how it evolves. I have seen many awards where attorneys lied in their statements just so they could collect the $250/fee. (Does this sound like a lobbying organization?)

There are ways to take on this corrupt system and turn the tables on the National Arbitration Forum and the lawyers they pay to make awards against you they may not be entitled to. A national group of consumer attorneys is fighting the arbitration system head-on.

If you are threatened with, or served an arbitration claim get in touch with me for assistance and referral to an expert who can assist you. If you fail to respond to an arbitration claim, it could eventually end up with a judgment against you, so the time to take action is when you are threatened or served.

Contact us at: budhibbs@budhibbs.com assistance

February 19, 2007

ABC News: Debt Collectors Gone Wild

Filed under: Debt Collection Industry — impishredhead @ 10:54 am


Debt Collectors Gone Wild
January 18, 2007 12:15 PM

Brian Ross and Joseph Rhee Report:

Despite tough government regulations protecting people against abusive debt collectors, a three-month ABC News investigation found many unscrupulous collectors routinely ignore the law.

Listen to a series of audio recordings from abusive debt collectors, and read their transcripts.

Consumers around the country have taped threatening phone calls from collectors who have called in the middle of the night, used abusive language and have threatened to have people fired from work or thrown in jail. All of these tactics are illegal under federal law.

Listen to another audio recording of one phone call from a debt collector, and read its transcript.

Former debt collector Mike Flannagan, however, told ABC News, “Mean works better than nice,” and many collectors prey on consumers’ ignorance of the law.

According to Flannagan, “If I call you every day, and I bust your chops every day, and I progressively threaten you, and I progressively get meaner…the more likely you’re going to pay me.” Flannagan says he eventually quit the industry in disgust with himself.

To learn more on how to protect yourself against an abusive debt collector, watch the Brian Ross 20/20 report this Friday on ABC News.

Rozanne Andersen of ACA International, the trade group for the collection industry, says the vast majority of debt collectors follow the law and that the image of the bullying, abusive collector is an old stereotype. According to Anderson, “A debt collector is not the enemy of the consumer. His or her job is to help find a solution and help the person figure out a way to pay the debt.”

Click Here for Full Blotter Coverage.

A report on the debt collection industry issued by the Federal Trade Commission, however, found that consumers filed a record number of complaints against collectors in 2005, up 14 percent from the previous year. According to the FTC, the 66,627 debt collection complaints were more than were received against any other industry and yet “represents a relatively small percentage of the total number of consumers who actually encounter problems with debt collectors.”

By far, the most common complaint to the FTC was from people who say they were pursued for payment over charges they did not owe.

In the case of Loida Ripdos of Minneapolis, Minn., even after she filed a police report about a case of identity theft, debt collectors continued to hound her to pay a $1,200 credit card bill for an account someone had opened in her name. While six companies stopped their collection efforts, one firm called Apex Financial made a collection call that Ripdos felt contained an implied threat to her life.

Listen to the Apex phone call to Loida Ripdos, and read its accompanying transcript.

According to Ripdos, “I was crying when the phones ended. I was, you know, scared, because I was alone at the time.”

Apex Financial said the collector was fired for other reasons, and that the actions by one Apex collector caught on tape “should not cast a shadow upon the hard work and ethical conduct” of other Apex debt collectors.

Listen to a recording of a message left on the machine of a consumer in the early hours one morning, and read its transcript.

Recordings, comments and more: http://blogs.abcnews.com/theblotter/2007/01/debt_collectors.html

November 10, 2006

Marauder and Ryon Gambill Exposed

Filed under: Debt Collection Industry — budhibbs @ 2:30 pm

For those of you who are unaware of who Marauder Corp. is, you might find this new site entertaining at the very least, and hopefully educational in keeping consumers from falling victim to America’s Dumbest Collector.   http://marauderexposed.com/

August 7, 2006

The Debt Collection Industry in America has Changed

Filed under: Debt Collection Industry — budhibbs @ 4:30 pm

The debt collection industry in America has taken a turn for the worse. Gone are the days when consumers and collectors could talk and work out reasonable settlements, based on professionalism and accepted business practices. Today’s debt collector is viewed as an uneducated, job hopping, drug induced moron who is under incredible pressure to hit a quota or face job loss. Owners are flush with large hordes of cash, so paying off lawsuits has become just another cost of doing business. Washington, DC and your state capital is not concerned about this problem and the FTC and your state attorney’s general are too over-whelmd to make a dent in the problem.

I receive more than 400 emails every day from consumers complaining about the illegal tactics used by debt collectors to fleece them out of their money. You file is now a ‘case number’, everyone is a ‘legal assistant’ or you’ve reached the ‘pre-litigation department’ which is nothing more than a call center where everyone is strung out on something, from an abundance of caffeine, uppers, downers, coke and smoke. Most blame the pressure of the industry as it has exploded in the past three years to numbers that were once unimaginable. This has caused the debt buying segment to expand to a billion dollar industry and accounts that are ten and fifteen years old, to be back on the front burner, with a renewed vigor by the over-zealous debt collector to seperate you from your cash.

To add to the pressures on both sides, the bottom feeders, those who buy old accounts are taking extreme measures to collect at the expense of violating laws and in many cases, committing crimes. These violations from organizations such as Unifund, Asset Acceptance, Midland Credit,  Account Management Services, Collect America, NCO,Shekinah,and anyone with a Buffalo, NY address threatening legal actions, posing as law enforcement and attorneys, manufacturing bogus documentation to validate their court filings, purchasing money orders to show phony payments on accounts, contacting third parties, violating everything the Fair Debt Collection Practices Act (FDCPA) states they should not legally be allowed to do.

The time has come to make changes and give consumers weapons to fight back these parasites of the American economy. I read recently where notorious bottom feeder Unifund, of Cincinnati, OH was at a debt buyers conference and their booth sign read: “FUTURE HOME LIENS FOR SALE!” Unifund president David G. Rosenberg has made millions living off the misery of others, with his despicable collection practices and innovated a lot of the bogus court filings that are now common. The good news is there are new ways you can employ to counter the moves of these parasites for both now and in the future that will make their jobs harder, more costly and bring a wrath of new legal problems upon them.

Having more than twenty years experience in this business, talked to millions of consumers dispensing advice, a few books, lots of radio and television and an upcoming movie on my resume, I feel it is now time to share this knowledge on a scale that will arm the average consumer with information and resources to considerably up the ante for the debt collector. I’m looking for your input, your feedback on proven methods that will change how debt collectors operate. This blog will be a place to get assistance on dealing with the debt collectors on a scale that slows them down, holds them accountable, gives you power you never knew you had and ways to bring their collections to a crawl.

We will also ask for those working in the industry to share their thoughts, secrets, business practices and give us an insight to what’s wrong with the collection industry in America.

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