Old Debts (or not) and Enormous Profit …

Apr 4, 2015 | Debt

Last Monday a friend of mine received a phone call on his cell phone from an unidentified Rhode Island number. He went to college in Providence, has friends there, answered.

This is what he got – “Hi, Mr. Loman, this is an attempt to collect a debt, anything – yada, yada, yada … can you confirm the last four digits of your social?”


“Is it ‘5555’?”


“Okay, well, I have an account here from Verizon, you owe twelve hundred dollars.”

“I’ve never had a Verizon account.”

“Well, sure, but it could also be from -”

“Could be?”

“From any one of the following companies now part of Verizon …” the guy then read off a very long list of companies, a list that pretty much summed up the telephone industry of the 21st Century.

“No,” my friend answered.

“No? Whattaya mean, no?”

“I don’t owe anything to anyone on that list.”

“Says here you do.”

“Then it’s wrong.”

“Look, Biff, I have it right here and -”

My friend has a law degree and a long history of dealing with total BS, so it finally hit him to ask, “Wait a second, what’s the date on this supposed debt?”

The guy on the phone fumbled around, Biff could hear papers being shuffled, murmurs of other voices from the boiler room, then, “Yeah, got it here, 2003.”

“You’re calling me about a twelve year old debt?”

“Well, no, see, we just received it -”

“Yeah, well, then it sucks to be you, have a nice day, don’t ever call again.”

Done. Or almost, because then Biff Loman did a reverse number lookup on the ‘collection agency’ that had never identified itself. The number was associated with a manufacturing firm in Pawtucket – where Biff worked and lived in the summers in college – that went out of business in the ’90s (Biff said it was hardly in great shape when he was there in the ’80s). This is known as ‘spoofing’ and it’s hardly a sign you’re dealing with any kind of stand up, legitmate company.

There’s little doubt this was a collection ‘company’ that buys up old debt for pennies (if that) on the dollar and then tries to collect on it. They are hardly known for the gentility of their subsequent collection activities.

My friend had, in fact, just dodged a deep, black hole, of hurt. As pointed out by Jake Halprin last summer in Paper Boys, Inside the Dark, Labyrinthine, and Extremely Lucretive World of Consumer Debt Collection, an amazing, jaw-dropping article in the NY Times – old debt is resold over and over again and is a spectacularly profitable industry. The problem is:

A gamut of players — including debt buyers, collectors, brokers, street hustlers and criminals — all work together, and against one another, to recoup every penny on every dollar. In this often-lawless marketplace, large portfolios of debt — usually in the form of spreadsheets holding debtors’ names, contact information and balances — are bought, sold and sometimes simply stolen.

So, paying on the so-called debt, even a let’s-get-rid-of-this nuisance amount of, say, $120.00 would accomplish only one thing – the ‘agency’ makes about 120% profit and Biff’s ‘settlement’ is never reported to anyone and the debt is pretty much free to be sold again … and again.

Yet, these guys collect hundreds of millions of dollars in what is essentially a completely unregulated industry.

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I’ll talk to anyone who is currently behind on their mortgage, thinks they may not be able to afford their mortgage in the coming months, or is already in foreclosure. The earlier we talk, the more options you have.

… Sarah Poriss.

Sarah Poriss, Attorney at Law, LLC is the largest woman-owned foreclosure defense law firm in Connecticut, providing homeowners with quality legal counsel in foreclosure mediation and foreclosure defense.

Working at Consumer Law Group in Rocky Hill, Connecticut for four years, Sarah specialized in representing consumers facing financial crises like debt collection harassment and identity theft. Upon opening her own office, she expanded her focus to defending consumers sued by credit card companies and representing homeowners in foreclosure.

Sarah has elevated her practice by exclusively representing clients with money issues. She played a crucial role in drafting foreclosure mediation rules as a member of Connecticut’s Bench-Bar Foreclosure Committee for seven years.

Additionally, she contributed to the Bench-Bar Small Claims Committee to enhance clarity in small claims proceedings and ensure debt collectors provide substantial evidence to win cases.

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