In the case of third-party debt collectors, who buy old "junk" debt from original creditors for pennies on the dollar, they often cannot prove that a consumer owes the debt. With no legal leg to stand on, the "bottom feeders" resort to tactics that New York Attorney General Andrew Cuomo compares to terrorism. These tactics are at the heart of the Dateline NBC report, and I've seen such tactics in a very personal way.
Hansen is best known for his "To Catch a Predator" series on would-be pedophiles. He takes on a different sort of predator--one interested in money, not sex--with his latest piece, which originally aired back in March. Like the sexual predators Hansen has become famous for confronting, these financial predators do not feel constrained by the law.
These conversations were tape recorded, and you can check them out here. They are gross violations of the Fair Debt Collection Practices Act (FDCPA), which governs debt-collection activities. But Cuomo says junk-debt collectors resort to unlawful tactics because they tend to work--and pay off handsomely.
I've seen those tactics firsthand, and I know the pressure and stress an unethical debt-collector can apply to an alleged debtor. I've reported on our experiences in the following posts:
* Welcome to My Nightmare
* Financial Terrorists Ride Again
* Financial Terrorism Revisited
NCO apparently is notorious for flagrant violations of the FDCPA. Public records indicate that Ingram & Associates' principal Angie Ingram is part of something called the "NCO Attorney Network"--even though her surrogates repeatedly told us Ms. Ingram "worked for American Express," "had been hired by American Express to sue you," "had a fiduciary relationship with American Express, etc."
The Ingram & Associates folks threw all kinds of insults, threats, and falsehoods at us. Here is just one example:
First of all, neither NCO nor Ingram ever sent us anything in writing, informing us of our rights to dispute the debt or have it validated, as required by the FDCPA. They simply started calling us and alleging that we owed a debt. Did they ever offer any written proof that we owed the debt? Nope.
But they were happy to say they could sue us and that we could wind up having the deed to our house auctioned off "on the courthouse steps."
Could Ingram carry out this threat? Well, they didn't. And seeing as how they never offered a shred of proof that we owed the debt, it's hard to see how they could. And seeing as how the debt was in my name only, but our house is jointly owned by my wife and me, it's hard to see how they could sell the deed to our house on the courthouse steps.