Saturday, January 30, 2016

Rubber Stamp Justice: US Courts, Debt Buying Corporations, and the Poor (PDF)

Every year, several hundred thousand people across the United States are sued by companies they have never done business with and may never have heard of. 

These firms are called debt buyers and although they have never loaned anyone a penny, millions of Americans owe them money. Debt buyers purchase vast portfolios of bad debts—mostly delinquent credit cards—from lenders who have written them off as a loss. 

They pay just pennies on the dollar but can go after alleged debtors for the full face value of every debt plus interest at rates that routinely exceed 25 percent.

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