Collections Agencies Folding

[EarnIt]

 

Everyone in WNY is nervous right now Tornado, the First American/Unistates bankruptcy filing sent a shockwave throughout the area. NCO and Creditors Interchange are pink slipping this week, expect to see a lot of small players gone by the new year. This is like Wall Street dejavoo, a domino effect on the area. Who wudda thunk it just six months ago?

 

http://www.insidearm.com/forum/messageview...p;enterthread=y

 

It might just be a Merry Christmas after all.

 

I think our situation at RLC had to do with inability to finance new paper, but who knows for sure.

Who says the Credit Crisis hasn't been helpful.

Edited December 13, 2008 by EarnIt

[Xecuter2]

More unemployed people isn't a good thing.

[EarnIt]

More unemployed people isn't a good thing.

 

Maybe most will violate their work release and go back home.

[Art Collector]

This really doesn't make sense if you think about it. With defaults on the increase would we need more collectors?

[hurricanesfans27]

This really doesn't make sense if you think about it. With defaults on the increase would we need more collectors?

 

 

cant squeeze blood out of a turnip..

[Art Collector]

This really doesn't make sense if you think about it. With defaults on the increase would we need more collectors?

 

 

cant squeeze blood out of a turnip..

 

 

Using that theory they should have never existed.

[Art Collector]

....typically collectors with more turnips have highers success rates, too. Of course that is relatively speaking.

[EarnIt]

This really doesn't make sense if you think about it. With defaults on the increase would we need more collectors?

 

More people are deciding to buy food vs. pay off bad debt.

 

If the CA's aren't getting paid they don't get as many accounts. If they don't get as many accounts becuase they are unsuccessful, they go under.

[Art Collector]

This really doesn't make sense if you think about it. With defaults on the increase would we need more collectors?

 

More people are deciding to buy food vs. pay off bad debt.

 

If the CA's aren't getting paid they don't get as many accounts. If they don't get as many accounts becuase they are unsuccessful, they go under.

 

So what were people choosing to buy when they weren't paying their bills before?

 

CAs work on margins. They collect a small percent of the debt they own. The more they own the smaller percent they have to collect to make the same profit level.

[EarnIt]

This really doesn't make sense if you think about it. With defaults on the increase would we need more collectors?

 

More people are deciding to buy food vs. pay off bad debt.

 

If the CA's aren't getting paid they don't get as many accounts. If they don't get as many accounts becuase they are unsuccessful, they go under.

 

So what were people choosing to buy when they weren't paying their bills before?

 

CAs work on margins. They collect a small percent of the debt they own. The more they own the smaller percent they have to collect to make the same profit level.

 

The secondary problem, the CA's can't finance purchasing new paper.

[HXF]

We should always remember that we are at war with the CA's. One of the worst mistakes in a war is to relax when the battle is going your way. If you don't hurry and win while you can, the enemy often finds new ways to fight back.

 

We should take advantage of their present weakness, by increasing our lawsuits against them, to push them over the edge.

[EarnIt]

We should always remember that we are at war with the CA's. One of the worst mistakes in a war is to relax when the battle is going your way. If you don't hurry and win while you can, the enemy often finds new ways to fight back.

 

We should take advantage of their present weakness, by increasing our lawsuits against them, to push them over the edge.

 

Already working on that front.

[Art Collector]

This really doesn't make sense if you think about it. With defaults on the increase would we need more collectors?

 

More people are deciding to buy food vs. pay off bad debt.

 

If the CA's aren't getting paid they don't get as many accounts. If they don't get as many accounts becuase they are unsuccessful, they go under.

 

So what were people choosing to buy when they weren't paying their bills before?

 

CAs work on margins. They collect a small percent of the debt they own. The more they own the smaller percent they have to collect to make the same profit level.

 

The secondary problem, the CA's can't finance purchasing new paper.

 

 

 

As defaults increase and collections becomes a tougher business as suggested, the one thing you can count on is reduced pricing on new AND old paper.

[MountainMan_60]

The beauty of it is if ca employees get laid off and can't pay their bils---start getting dunned by their former bottom feeding friends--their is sweet justice!!

[Florida_Stang]

We should always remember that we are at war with the CA's. One of the worst mistakes in a war is to relax when the battle is going your way. If you don't hurry and win while you can, the enemy often finds new ways to fight back.

 

We should take advantage of their present weakness, by increasing our lawsuits against them, to push them over the edge.

 

Great post!

 

The collections industry has always taken a stance of (and pride themselves on) ruthlessness in collecting debts. Personally, I think that is a result of the numerous ex-cons in the industry and many other who have watched mobster movies far too many times and fancy themselves as Vito smashing Joe Blow's kneecaps with a hammer when he can't repay a debt.

 

Now the tides have turned and the collections industry is on it's heels. We need to mirror and exceed their ruthlessness. We need to DV (timely, if possible) EVERY account, make them prove and document every single cent they claim we owe. We need to go over their statements with a fine toothed comb to find any possible violations and enforce our rights to the full extent of the law when they violate.

 

Also, everyone needs to be on their toes in these next coming months. As the collection industry gets more desperate they will become more aggresive in their collection efforts meaning greater chances of violations. We need to further exploit the plight of their industry!

 

Godspeed!

Edited December 13, 2008 by Florida_Stang

[Sourgirl32]

Merry Christmas! Best news I've heard in awhile

[LadyMonteCarlo]

This is interesting considering the number of defaults taking place. However, thanks to CreditBoards, the consumer has now learned to stay off of the phone. The CA's no longer have the intimidation factor on their side.

 

Before CreditBoards, many of us thought we HAD to talk to CA's. We had no choice, but to be humiliated, intimidated, and forced to make agreements that we knew would seriously compromise other financial obligations.

 

Everyday I learn something new and worthwhile here at CreditBoards. I love this place!! As for the CA employee's receiving their pink slips, I'm sorry to see anyone lose their job. However, now would be a good time for these folks to move on to a more honorable profession in my humble opinion.

[drkaje]

It's not like that bad paper is going anywhere, LOL! People who either can't or don't want to pay old bills will just be dealing with someone else. I agree that a few people will get lucky if there's improper documentation or things go past SOL in the shuffle but people are still going to deal with CAs.

 

My guess is that this situation helps OCs. Maybe they won't sell debts as much or will be able to get a premium for the tastier bad debts.

[EarnIt]

It's not like that bad paper is going anywhere, LOL! People who either can't or don't want to pay old bills will just be dealing with someone else. I agree that a few people will get lucky if there's improper documentation or things go past SOL in the shuffle but people are still going to deal with CAs.

 

My guess is that this situation helps OCs. Maybe they won't sell debts as much or will be able to get a premium for the tastier bad debts.

 

It hurts OC's. They can't move the paper off of their portfolios. JDB's can't get the financing to purchase it at present.

 

Some of the recent settlement offers I have received of late prove this, at least anecdotally.

 

In the last three months specifically, I have been getting letters of settlement that I did not think were possible 6 months ago. 35% from both AMEX and Chase. Chase is giving me 8 months to pay off a 35% settlement. A 20% settlement with BOA. With the exception of AMEX, all of my debt should have been sold to JDB's by now. It hasn't. With the exception of one card, all of DW's and my debt are with the OC's.

 

Thinking back to this thread, one thing did stick in my mind. The credit crisis. CA's can't get the financing to purchase new paper, old paper is worthless, recent debtors are buying food not paying CC's. Old paper has played itself out. All of a sudden it makes sense. The OC's are desperate to move the paper, and are offering settlement offers almost as cheap as they would sell the "fresh" paper for. With payment terms that would not have been offered even 6 months ago.

[Senate]

I wondered why a CA that has a program like this:

 

repay a small amount for 10 months and the original student loan company Sallie Mae will pick it back up and show no negatives - would out of the blue offer me a settlement for half while agreeing in paper that they would show it as paid in full (not paid for less than agreed)

 

this must be the time to strike

[drkaje]

It's not like that bad paper is going anywhere, LOL! People who either can't or don't want to pay old bills will just be dealing with someone else. I agree that a few people will get lucky if there's improper documentation or things go past SOL in the shuffle but people are still going to deal with CAs.

 

My guess is that this situation helps OCs. Maybe they won't sell debts as much or will be able to get a premium for the tastier bad debts.

 

It hurts OC's. They can't move the paper off of their portfolios. JDB's can't get the financing to purchase it at present.

 

Some of the recent settlement offers I have received of late prove this, at least anecdotally.

 

In the last three months specifically, I have been getting letters of settlement that I did not think were possible 6 months ago. 35% from both AMEX and Chase. Chase is giving me 8 months to pay off a 35% settlement. A 20% settlement with BOA. With the exception of AMEX, all of my debt should have been sold to JDB's by now. It hasn't. With the exception of one card, all of DW's and my debt are with the OC's.

 

Thinking back to this thread, one thing did stick in my mind. The credit crisis. CA's can't get the financing to purchase new paper, old paper is worthless, recent debtors are buying food not paying CC's. Old paper has played itself out. All of a sudden it makes sense. The OC's are desperate to move the paper, and are offering settlement offers almost as cheap as they would sell the "fresh" paper for. With payment terms that would not have been offered even 6 months ago.

 

Wondering if those will ever come off your report. People here say Amex always holds the paper.

[Sourgirl32]

I wondered why a CA that has a program like this:

 

repay a small amount for 10 months and the original student loan company Sallie Mae will pick it back up and show no negatives - would out of the blue offer me a settlement for half while agreeing in paper that they would show it as paid in full (not paid for less than agreed)

 

this must be the time to strike

 

ITA! Time to strike. Wondering if I could get an offer like that for my old SL. I only owe 900 bucks,thus no rehab allowed.

[naptime]

This is weird, but this thread triggered a memory of Tweety Bird saying...

 

"Aww, da poor puddy tat faw down."

Edited December 13, 2008 by naptime

[aeroman]

If they are offering you those kinds of settlements I would go for deletes as well once the money is paid. Get that in writing with an original siggy.

[RBinAK]

My two baddies left are NCO and Elite Recovery. What does this mean for me if they go under. Will the papers revert back to the OC for resale? Will this stuff linger on my credit report and be unmanageable?