The Aspen Institute Financial Security Program and Pew will hold a webinar on Thursday, October 28 at 1:00 pm ET on the debt collections litigation system and ways to create better outcomes for people. Here is the description:
The system for collecting unpaid debts is broken. One in three American adults had debt in collections prior to the pandemic in 2019 — and during the pandemic almost half of Americans reported facing serious financial problems. The leading cause for debt collectors to contact consumers for non-loan debt include medical bills, telecom bills, and utility bills — and many times, people are unaware they owe a debt until a collector calls.
The consequences of burdensome debt are clear: consumer debt threatens people’s financial security by making it harder to stay housed, obtain credit, and build wealth. What is far less discussed is this: for 68 million people across America, the average amount in collections was less than $2,000.
Some states and advocates are pioneering ways of fixing the broken system of debt collections litigation. To do this, they must first understand the common ways the system fails individuals, and the state and federal solutions to ensure that debt is legitimate; that defendants know they are being sued; and that judgments do not permanently damage debtors’ financial security.
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Debt collection involving most credit cards and mortgages is almost 100% owned by securitized trust or investors. Banks, credit card issuers, and mortgage servicers cannot legally sell debts they DO NOT OWN. This type of unlawful activity has been going on for far too long. Most people who actually have experience or understand securitization know that all wall street trust are regulated by the SEC. When a default occurs the managers of the trust must write-off or charge-off the debt based on strict SEC rules. These charged-off debts can be assigned to law firms for collect only by authorization of the owners/trustees for/of the trust. This scheme of selling securitized debt has been a growing unlawful scheme since the mid 1990s when the nefarious debt collection companies were conceived to make massive profits on stolen charged-off debt usually assigned or SOLD for pennies on the dollar by servicers who lack any authority to sell debts that are not their property. State and Federal Courts have been manipulated to write unlawful opinions that violate most UCC statutes in an attempt to legitimize illegal debt collection. Now, many published opinions are being used to support what is essentally organized crime using Courts to process illegal judgments and use its resourses to EXTORT citizens for debts that are being stolen from securitized trust without the permission of the legitimate owners. If the investors knew that 100% of the debts were receiving judgments for total amounts owed with interest and attorney’s fees they would process them under contract with legitimate law firms. This is the biggest scheme fraud scheme in history.