Anson Street, LLC
Ashley Funding Services LLC
Asta Funding, Inc.
AFSI Pegasus Holdings, LLC
Asset Acceptance LLC
Cavalry Investments, LLC
Cavalry Portfolio Services, LLC
Cavalry SPV I, LLC
Cavalry SPV II, LLC
Cliffs Portfolio Acquisition I, LLC
eCast Settlement Corp.
Encore Capital Group, Inc.
Fund Pgasus, LLC
Jefferson Capital Systems, LLC
LVNV Funding, LLC
Midland Credit Management, Inc.
Midland Funding LLC
NCO Portfolio Management, Inc.
Palisades Collection LLC
Palisades Acquisition XVI, LLC
Pegasus Funding, LLC
Portfolio Recovery Associates, Inc.
PRA III LLC
PRA Holdings I, LLC
PRA Holding II, LLC
PRA Holding III, LLC
PRA Receivables Management, LLC
Resurgent Capital Services, L.P.
Resurgent Capital Services PR LLC
FG REO, LLC
Sherman Acquisition L.L.C.
Sherman Financial Group, LLC
Unifund CCR, LLC
Unifund CCR Partners
Unifund Portfolio A
VATIV Recovery Solutions LLC
Debt buyers purchase defaulted debt -- including credit card debt, car loans, student loans, cell phone bills, medical bills, and health club bills -- for pennies on the dollar. They purchase these debts in portfolios, from original creditors or from other debt buyers and debt brokers. Debt buyers then attempt to collect the debts using a variety of methods, ranging from telephone calls to lawsuits. If a debt buyer is unsuccessful in its collection efforts, it often resells the debt portfolio to yet another debt buyer, which in turn resells the portfolio if it too is unable to collect.
Debt buying occurs when a company purchases debts from a creditor, such as a credit card company, for a fraction of the face value of the debt. It is common for certain creditors, particularly credit card issuers, to sell defaulted accounts on which they have been unable to collect. Debt Buyers will purchase all sorts of debt; defaulted consumer debt from credit card providers, telecom debt from cell phone providers, auto loans, student loans, mortgage deficiency paper, etc. -- all for pennies on the face value dollar.
When a debt buyer buys debt from a creditor or credit originator, the creditor removes that debt from its books. However, money is now owed to the debt buyer, and the debt buyer can bring an action against an individual to get that money. The company then works this debt through its own collector workforce, collecting two to three times the purchase price over the next seven years. It may also use another collection agency to collect the debt or resell the debt to yet another debt buyer.
DEBT BUYER FACTS ACCORDING TO THE FEDERAL TRADE COMMISSION
1. Debt-Buyers Only Pay About $.04 Per Dollar On The Accounts They Buy.
Ever wonder why a debt-collection company might make endless calls to someone who only owes $15? Because they can afford to. According to the FTC's research, if that collector get the full $15, it makes more than $14 in profit. If the debt it older, it's possible the debt-buyer paid significantly less. It's simple in theory, but in practice, the business requires experience to appropriately value debt, discipline to purchase debt only at reasonable prices, and well-trained collectors to work the paper. Overpaying for debt is akin to burning money, and excellent pricing models aren't much use if collectors can't cajole debtors to pony up. You better believe that they will do everything in their power - including breaking the law - to get debtors to pony up.
2. Debt-Buyers Have Information That Alleged Debtors Might Need, But Tend Not To Share It
Consumers often complain that a debt collector contacted them and provided only the most vague details about the amount that's owed. However, the FTC review found that even though debt-buyers are often receiving information that would help the consumer know if they actually owe the debt or if there is a mistake - name of the original creditor, account number, social security number, date of last payment, date of charge-off - "debt collectors, including debt buyers, generally do not include these types of additional information in their validation notices."
3. Debt-Buyers Aren't Being Told If Debt Has Been Challenged
When the debt-buyer pays those pennies for consumers' debts, they aren't necessarily being told by the seller if the alleged debtor had previously attempted to challenge the debt. Debt-buyers are also rarely given a breakdown of principal, interest, and fees. All of this information is vital to the supposed debtor in determining how much is actually owed on the debt.
4. Debt-Sellers Rarely Provide Supporting Documents
Many debt collectors are just going on blind faith that the information they receive from the original creditors is accurate. The FTC report reveals that "For most portfolios, buyers did not receive any documents at the time of purchase. Only a small percentage of portfolios included documents, such as account statements or the terms and conditions of credit."
5. Sellers Make No Guarantees About The Accuracy Of The Info & Documents Provided
Even when the sellers do provide everything the debt-buyer might need to back up its claim, the report found that "sellers generally disclaimed all representations and warranties with regard to the accuracy of the information they provided at the time of sale about individual debts - essentially selling debts, with some limited exceptions, 'as is.'"
For the debt-buyer, it's not that big a deal - it only paid a few cents for the flimsy file - but for the consumer who has to deal with trying to prove that the information is inaccurate, it can be utterly frustrating.
6. No Guarantee On The Availability Of Documents
In addition to not guaranteeing the accuracy of the debts being sold, the seller often will include a disclaimer saying that not all documents may be available for all accounts handed off to the debt-buyer.
This is why, if you believe there is an issue with a collections attempt, you should assert your right to see documents from the original creditor.
DEBT BUYERS AND THE FDCPA
The Fair Debt Collection Practices Act (FDCPA) was enacted by Congress in order to protect consumers from predatory debt collectors - whether from Asta Funding, Inc. or any other debt collection agency. It sets down certain laws and guidelines that Asta Funding, Inc. - and every other debt collector - must follow. If debt collectors or debt buyers don't follow the FDCPA, they can be taken to court and sued.
For example, when Asta Funding, Inc. - or any other debt collector - contacts you, he must identify himself as a debt collector. It's illegal for a debt collector to pretend to be someone else. He can't claim to be a police officer, for example, or an attorney. In addition, Asta Funding, Inc. must treat you with respect, and can't demean or threaten you with an action that they have no intention of carrying out. In addition, third party collectors can not do the following:
- Filing lawsuits with no documentation showing that the debt was ever purchased or assigned to the plaintiff
- Pursuing debts that are not actually owed by the person being targeted
- Attempting to collect, improperly suing, or threatening to sue people on debts that are past the applicable statute of limitations or were settled and closed via bankruptcy
- Reporting inaccurate creditor information to a credit bureau
- Impersonating law enforcement and threatening to have a person arrested, or threatening to directly garnish a person's wages, seize their property, etc.
- Failing to validate debt in writing when requested
- Continuing to call a person's place of employment when instructed not to
- Ignoring cease-and-desist notices to stop telephoning and communicate only via mail
Verbally abusing, using obscene language, threatening and harassing consumersIf you're being harassed by a debt collection agency - whether Asta Funding, Inc. or another debt collection agency or debt buyer - you'll be relieved to know that you have recourse under the law. Your first step should be to record all phone conversations with the agency (if your state allows it), and then take your evidence to an attorney. If you file suit against the agency and win, the judge could award you up to $1,000 in damages, plus require that the agency pay court costs and attorney fees.
If you think any of your consumer rights have been violated even in the slightest by Asta Funding, Inc. and you need legal help, call Sulaiman Law Group, Ltd at 630-413-9054 for a FREE CASE REVIEW, or complete one of our online submission forms.