The Truth About Junk Debt Buyer Lawsuits: 5 Important Questions and Answers

Monday through Friday, in most every county courthouse in America, somebody is filing a Junk Debt Buyer Lawsuit. Here are Five Frequently Asked Junk Debt Buyer Lawsuit Questions Answered.

FAQ #1 Who is this company suing me, and why have I never heard of them?

So a civil complaint alleging a debt owed is filed against you by a company you’ve never heard of? It’s not your fault that you didn’t know this company existed. You’ve probably never even contracted with them. This company is known among consumer protection attorneys as a Junk Debt Buyer.

When banks and other credit offering organizations realize that credit extended cannot be recouped without high costs, they are left with a choice as to whether those high costs are worth it or should they sell the claim to the debt to a third-party. Often they chose the latter. They write off these uncollectable debts on their taxes, group them by the hundreds and even thousands into portfolios, and then sell those portfolios to these junk debt buyers for literal pennies on the dollar.