Nightmare at the Courthouse
Many of you may have heard of (or even worse, been a party to) the ongoing problem of junk debt. Simply stated, a junk debt is a debt that is not worth the paper on which it is printed. There are many varieties of junk debts: the debt may be outside of the applicable statute of limitations, the debt may be”held” by a company that lacks legal title and rights to collect on the debt; to name a few.
There is a nationwide industry in which investors contribute money to purchase old debts such as car loans, mortgages, and credit card accounts and then seek to recover money on them. Recently the American Bar Association published an in-depth article about the junk debt phenomenon and the problems it causes for debtors, the court system, and others. Each week hundreds of courtrooms across the United States are clogged with questionable or outright illegal cases in which collectors seek to recover money from debtors. While there may be some agreement on the principle that folks should honor their debts it should also be widely agreed that unfair and harassing debt collection should not be allowed. Somewhere in between is a not-ecstatically-happy-but-manageable medium.
If you are having problems with debt collectors you should consult an experienced attorney to discuss your situation and what legal options you may have to obtain some help.