Since economic crash brought by the bankers, life has not been good for the general public. Banks committed all kinds of criminal acts made a ton of money and then got trillions of dollars in bailout money as well. President Obama, instead of investigating and prosecuting the bankers, has been almost a co-conspirator and has done everything to cover up for the banks. This is at a time when millions of people are losing homes, getting kicked out in the streets and are being chewed by corrupt banks, credit cards debt and collection industry.
Unscrupulous and aggressive debt buyers have been using deceptive tactics to harass and collect funds without adequate proof of debt and its accuracy. People are dragged to court where often court has to pay defendants expenses otherwise they can’t afford to defend themselves against well financed debt collection industry. The net result is a very costly abuse of consumers and courts.
According to the California Department of Consumer Affairs much of the debt purchased by debt buyers is not accompanied by sufficient documentation to identify the debtor. However, as many as 90 percent of some debt buyers claims result in a default judgment where no defendant appears to challenge the debt claim. This often happens because the consumer is not even aware of the claim.
In a bit of good news, on January 31, California Attorney General Kamala D. Harris announced that the State Senate passed legislation SB 890 (Fair Debt Buyers Practices Act) to protect consumers from unfair debt collection practices. Basically, this legislation requires crooked credit and debt collection industry to do things what they should already be doing and follow the law.
“The Fair Debt Buyers Practices Act will require purchasers of consumer debt, or debt buyers, to provide documentary evidence to consumers in order to ensure that their collection efforts are directed at the proper individual. Debt buyers have flooded California's courts with lawsuits seeking judgments on debts without adequate documentation, often resulting in collections efforts against the wrong person.
Too often, a consumer can get ensnarled in a long and costly battle to prove they are not the ones responsible for debt,The Fair Debt Buyers Practices Act will put reasonable requirements on debt buyers and ensure consumers are not forced to pay the debts of others.
Consumer debt is routinely purchased and resold in bundles, made up of thousands of accounts, with inadequate documentation. As a result, debt collection efforts often target the wrong consumers or wrong amounts, or seek payment on debt that has expired or been discharged.
Senate Bill 890, by Senator Mark Leno (D-San Francisco), would prohibit debt buyers from obtaining a judgment in a debt collection lawsuit unless the debt buyer can document their ownership of the debt, the balance of the debt, the date of the default or last payment, the identity of prior owners of the debt and the name and address of the debtor in the original creditor's records.
In addition, the debt buyer must also have the original contract or a document provided to the debtor while the account was active to show evidence of the debt.”
Too often, a consumer can get ensnarled in a long and costly battle to prove they are not the ones responsible for debt,The Fair Debt Buyers Practices Act will put reasonable requirements on debt buyers and ensure consumers are not forced to pay the debts of others.
Consumer debt is routinely purchased and resold in bundles, made up of thousands of accounts, with inadequate documentation. As a result, debt collection efforts often target the wrong consumers or wrong amounts, or seek payment on debt that has expired or been discharged.
Senate Bill 890, by Senator Mark Leno (D-San Francisco), would prohibit debt buyers from obtaining a judgment in a debt collection lawsuit unless the debt buyer can document their ownership of the debt, the balance of the debt, the date of the default or last payment, the identity of prior owners of the debt and the name and address of the debtor in the original creditor's records.
In addition, the debt buyer must also have the original contract or a document provided to the debtor while the account was active to show evidence of the debt.”
California legislation SB 890 passed the Senate on a 22 to 14 vote and now moves to the Assembly.
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Source:
California Attorney General Kamala D. Harris
http://ag.ca.gov/newsalerts/release.php?id=2620
