Underground Journal

What are Junk Debt Collectors

In Michigan where unemployment has been sitting above 13% for more than 2 years it comes to no surprise that people who are not able to find jobs are falling behind on their bills. Michigan Bankruptcy Attorneys are being flooded because people not paying their bills are being sent to collections  are seeking help. In addition, people are now receiving bills from companies that they have never heard of even dealt with.

How do I owe people I never received services from?

If you are unable to pay your bills whether it is medical or credit cards they will do everything possible to try to collect. They most likely have tried to setting the debt with you for pennies on the dollar.  However, they often reach a point where they recognize their collection efforts are occurring in vain. It comes to this point where they either charge your account off as uncollectable or they try to find other methods to make money off your account that you are no longer paying on.

When the original creditor gives up on collecting they often turn to agencies like junk debt collectors (JDC) or junk debt buyers (JDB). These companies buy debt from hospitals and credit card companies. These companies pay pennies on the dollar for the account and take ownership of the debt. These JDC are taking a gamble that they can get you to pay on the debt if they file in court hopping to receive a default judgment because you won’t reply to the court.

The goal of these companies is to basically scare you by filing collections with the court while adding bankruptcy attorney fees along with other charges on the account making sure they get their initial investment back. These companies are taking a crap shoot when buying these accounts from creditors hoping they can collect from you.

How can I protect myself from these creditors?

Several of these companies believe it or not are law firms and use their attorney name to invoke fear. You should always challenge them by asking for proof of debt and ask to see your signature. If they ask if you ever had an account with xyz Credit Company you can say I no longer have an account with them. These companies often are notorious for not being organized and if you go to court and challenge them by asking for original documentation with a signature and they can produce it the judge will throw out the case.

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