Debt buying companies make lots of money preying on debtors whose delinquent accounts have been charged off by original creditors. They sue people for the full amount of the debt that the consumer owed his or her original creditor, even though the debt buyer paid a cheap price for the rights to sue on the account. How cheap? In many cases, debt buyers pay virtually nothing for the accounts they buy. While the rumors abound as to how little they actually pay, rest assured that it is not very much. I have heard that if a debt buyer pays 12 cents on the dollar for a batch of accounts, they got a “bad deal.”
In our line of work, we see some repeat offenders. Some of the bigger, more nationalized companies sue thousands — perhaps tens of thousands — of debtors per year. These are some of the biggest:
— Midland Funding, LLC
— Equable Ascent Financial, LLC
— Asset Acceptance, LLC
— CACH, LLC
We see massive filings of lawsuits across the state of Texas from these companies. In Collin County, for example, Asset Acceptance filed 19 lawsuits during the month of October, 18 in December, 12 in January, and 12 this month. Midland Funding filed at least 86 different lawsuits in the Denton County court system during the last three months of 2011.
If you are “working” with one of these companies, getting annoyed with their collection efforts, or even getting sued by one of them, you need to understand how they operate. These companies work from a global perspective, dealing with millions upon millions of dollars in charged-off debt and hundreds of thousands of consumers across the nation. You are but one in a million. You are definitely not alone.