photo credit: Brad_Chaffee
A recent post on the Bankruptcy Lawyers Blog about the Maryland high court ruling that for all cases filed on or after 1/20/12, debt collectors and creditors must produce real proof that the debtor incurred the debt. There is apparently a nationwide problem with debt collection agencies and similar organizations buying debt in bulk quantities at extremely cheap prices. They then go after the debtors using deceptive practices to try to get them to pay. Many times people don’t know their rights and pay unnecessarily.
There are many requirements a debt collection agency must meet, but many regularly skirt them or fulfill the letter of the law only.
For example, if a debt collection agency contacts you about a debt you supposedly owe, you have the right to request debt validation – proof that you actually owe this debt to the original creditor (not the debt collection agency). That means providing documentation that proves you owe the original creditor the amount the agency is trying to collect. Many times they will not bother as they are looking for quick payments, not a protracted process that will cost them money in the long run.
For a full discussion of what tricks agencies try to pull and the steps you can take to protect yourself, read What is Debt Validation: Make debt collectors provide proof.
