Panic. Fear and Loathing. Dread every time the phone rings….
Those are the most common complaints from consumers that are in the unfortunate circumstance of having their past debt bought by a junk debt collector like Cach LLC.
Most of these debts are what we call “zombie debts”. They have been wrote off by the original finance company and sold for pennies on the dollar to a debt collection agency.
The buyer hopes that the consumer will be scared into setting the debt without doing their homework.
Zombie Debt Buyers Are Big Business These Days…
Here is a recent question posted online by Viviana about a lawsuit from Cach LLC…
I am being sued by CACH LLC in Jacksonville FL. It is small claims for up to 5000.00 – I have not been served the paperwork as of yet but I know that there is an order to serve me with the legal documents. The debt is from an old Citi card that was then transferred to another lender without advising me of this.
So in the transition the debt did not get paid.
The new lender then sold the debt to CACH LLC – They have never been able to send me anything via mail only threatening phone calls. I am currently pregnant and we are trying to save for our new baby. I don’t know what we should do at this point I just want it taken care of without this affecting our savings we currently have.
We have many drs bill and hospital bills to start paying. Do you have a suggested lawyer that can help. Also is there a possibility to have my husband handle everything? He does not want me to worry and stress and possibly harm our unborn child.
Capitalism at all costs has lead our leaders to allow lax debt collection laws to provide a breeding ground for junk debt buyers like this. It is a collect at all costs mentality that could care less about the consumer on the recieving end of their strong armed tactics. Could care less if the debt is valid (see Bank Of America selling Cach debt records that they could not provide any documentation for in 2012). Could care less if you are pregnant like Viviana, or elderly and on a fixed income.
The one thing the do care about is their “investment”. They assume that by purchasing old debts for pennies on the dollar, that the numbers will work in their favor. In layman’s terms, that means they expect to be able to scare enough consumers into paying back their expired debts in full plus interest on enough accounts to make the “investment” worthwhile.
As I mentioned above, it is big business in our country so it is clearly profitable.
But what can you do as a consumer to move forward?
The first and most important thing is to not let the collection agency tactics overwhelm and disrupt your life. I realize that is easier said than done, and when I got my first collection letter I don’t think I sleep for a week. Hindsight is 20/20 though and it time the stress, worry and burden eased. It was not an easy path but one I wanted to share with other consumers that are caught up in the junk debt madness.
For me, the most important thing was to understand the Fair Credit Collections Act, your rights and the laws as the applied to my situation. There was entirely too much disinformation from the actual collection agency, and even more lies from a shady debt settlement company and no clear resource to turn to. This was long before the internet so I had no way to know what was what. Now-a-days, you can contact the Consumer Financial Protection Bureau directly.
They oversee the entire credit and debt industry and should be able to point you in the right direction. I have heard of some cases getting completely dropped once a consumer speaks with the CFPB. They are well versed on the shenanigans and fraud schemes that debt collectors use.
They know that these companies have a core group of founders that turn business into to business into and endless, revolving door of LLC’s to keep the game going.
They can help protect you and let you know if the company is valid or just phishing for an opportunity to take your money with no legal rights to do so.
Although it took many years and lots of sleepless nights, I was eventually able to settle my debts and rebuild my credit history successfully.
The best piece of advice I have for consumers is to immediately consult with a attorney and let them handle the stress.
Trust me, it is not worth fighting it alone. A professional attorney will be able to immediately issue a cease and desist letter to the debt collectors and make them prove the debt is valid in writing, in court. 99% of the debt collectors will stop at that point.
If the debt is valid and able to be proven, your attorney will help you determine if a Chapter 7 bankruptcy or settlement would be in your best interest.