Holding Original Creditors Liable?
I've been a lurker here for years! Sorry for the long post. And Yes, only partially thought out here or more like that of a typed out rambling, but it is brought on by looking at the numerous complaints I see online with reverse look up sites, forums, blogs, and even news posts regarding Fake Debt Collectors and Rogue Debt Collectors. Of course a high number of these relate to Payday loans.
If as an online community, we were to approach our Law Makers, CFPB, FTC, NACA, etc. to push liability of Rogue and Fake Debt Collectors onto the original creditors and/or online lead generators like Money Mutual, we might see some debt collection reform?
I have experienced this myself with both real debt collectors who violate FDCPA and obvious fake collectors. I haven't thought it out too far, but at this time in these scenarios debtors have little recourse. Suing the real rogue collectors is an option, but many of these firms are recent start up and small. At least this seems true with what I have found with the couple of real debt collectors I have dealt with. These firms were real enough to respond to my "allegations" in CFPB complaints, but not even a year old.
Its the other breed of fake collectors that scares me. Getting a call from someone who knows all of my information and outstanding debt, but cannot provide me with a mailing address? I cannot find any information of the collection agency? I can't get a dunning letter, and have civil and criminal cases against me?
For Fake debt collectors like these (or collectors that refuse to provide information that any consumer can legally ask for like a mailing address), the consumer has little recourse. Agencies are chasing ghosts, fake business names, fake law firm names, etc. These cases have little unlikely positive recourse without utilizing a lot of man hours to do a true indepth investigation.
Keep in mind that many of these fake debt collectors got the information from somewhere, more often than not from two "supposed" sources: the original creditor or junk buyer, and lead generating websites such as Money Mutual.
Imagine if we, the consumer, had the right to go after "X" payday company which has sold off your loan and private information to anyone that they chose to? If we could go after the root of the issue? Did the Payday company verify that the buyer of the debt was a licensed, legitimate debt collector and not a thief posing as one?
What if we could sue Money Mutual or other lead generators for not verifying the companies that they are sending our private information to? Are these companies legal? Licensed? Surely people aren't getting collection calls about loans they never took out from an original creditor?
Again, this is only an open thought. A pondering to see if the community believes it may be a cause to lend our voices to.
I guess the summation is that I am asking that the original debt owner and lead generators, and then by chain of possession the previous owner of the information, be held responsible for making sure a consumer's information is appropriately safeguarded.