Old Debts (or not) and Enormous Profit …

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.

rattman_paper
Script from a ‘collection’ company a few dozen times removed from the debt.

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?”

“No.”

“Is it ‘5555’?”

“Perhaps.”

“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.”

Continue reading Old Debts (or not) and Enormous Profit …

Contracts, French Meals, Debt, and Groucho Marx

“I don’t want to belong to any club that would accept me as one of its members.” ~ Groucho Marx

Groucho-MarxIf you’re looking for a car, or a student loan, or a credit card, or short term loan and there are investors out there dying for you to take on the debt, you have to wonder why . . . and consider deeply before joining the club.

Look at it this way: You’re walking down the street, hungry, deciding between Five Guys, In and Out Burger, and a couple of decent Chinese food take-out store fronts when the owner of a new French restaurant runs up to you, offers to set you and your friends up with a world famous 7 course meal.

You’re tempted – you’re salivating, in fact – but explain you simply can’t afford it. No sweat, he tells you, 7 courses, a couple bottles of fine wine, all the baggettes you can eat, and a dessert to die for AND you have 90 days to pay the meal off. Continue reading Contracts, French Meals, Debt, and Groucho Marx

P.T. Barnum and Consumer Debt

p t barnum's ill news4-thumb-350x470-17752Most people remember P.T. Barnum for the line – “there’s a sucker born every minute.” Great – if not cynical -line, but Barnum never said it.

I have been thinking of him in a slightly different context lately, however. Over the past two weeks or so I’ve made a series of posts on my Facebook page concerning consumer debt – all of them pretty sobering. Like the New York Times article about car repossessions and military personel.   

I seems that when cars are illegally repossessed by lenders, there is no recourse through the courts. There is a clause in many – many – financial contracts that require all disputes be settled in binding arbitration. Only. Continue reading P.T. Barnum and Consumer Debt