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Meet Linebarger - The Government's Biggest Private Debt Collector

Tyler Durden's picture




 

Collecting debt is a dirty business which is why The Federal Government turns it over to the private sector. Meet one of the biggest players in the industry, law firm Linebarger Goggan Blair & Sampson. It has worked for small-town school districts, the city of New York and at one point, the largest tax collector in the country: the Internal Revenue Service. As CNN reports, based in Texas, Linebarger works for 2,300 clients nationwide and collects $1 billion for its clients each year. But the collection system is far from perfect, leading to some nightmare scenarios. Despite decades of scandals over the way the firm gets business (and even jail time for one of its top executives) Linebarger still lands lucrative government contracts...

 

As CNN Money reports, Government agencies across the country are hiring private debt collectors to go after millions of Americans over unpaid taxes, ancient parking tickets and even $1 tolls...

It’s a good deal for cash-strapped states, cities and other local governments. By outsourcing this dirty work and letting private companies charge debtors sky-high fees, government agencies can get these collection services free of charge.

 

And it's a great deal for debt collectors. In an industry already known for bad behavior, debt collectors that work for government agencies usually don’t have to work within the confines of consumer protection laws – opening the door for higher fees and even more aggressive tactics.

 

Their government bosses can give them the power to threaten debtors with the suspension of their driver’s license, garnishment of their wages, foreclosure and arrest to get them to pay up.

 

State lawmakers have even passed laws allowing private collectors to charge debtors steep fees. In Florida, for example, fees can be as high as 40% on top of the total bill, which includes not only what they already owe, but interest and government penalties as well. In Texas, they can reach 30%. And in cases of unpaid toll violations, flat fees can effectively amount to more than 100%. As a result, small unpaid tolls can easily balloon into hundreds of dollars, once government penalties and collection fees are tacked on.

 

"They keep figuring out ways to stack these fees up,” said Tai Vokins, a Kansas-based attorney and former assistant attorney general. “They’re preying on the absolute poorest people."

 

And this is all legal.

*  *  *
True Stories...

*  *  *

One of the biggest players in this industry is law firm Linebarger Goggan Blair & Sampson. Based in Texas, Linebarger works for 2,300 clients nationwide and collects $1 billion for its clients each year.

Despite decades of scandals and bad press surrounding the firm and its partners, Linebarger continues to wield widespread political influence and rake in new million-dollar contracts.

The scandals date back to its early days, when firm partners became infamous for using political connections to win contracts and change laws. Past controversies ranged from allegations of illegal loans to public officials to inappropriately influencing lawmakers, including a controversial Mexican getaway with a Texas Speaker of the House that reportedly involved a topless dancer.

 

Some critics thought the firm could even face extinction in 2002 after a major partner, Juan Pena, was indicted on charges that he bribed two city councilmen with more than $10,000.

 

Pena eventually pleaded guilty to bribery charges, lost his law license and was sentenced to 30 months behind bars. He did not respond to requests for comment.

 

Yet the scandals have continued. Take Chicago, for example, where Linebarger's contract was terminated in 2008 because the firm had paid for the trip of a top city official. The bad blood didn’t last long though, with the city hiring it again in the same year.

 

"The incident ... was embarrassing to say the least, but we worked very hard to earn another chance to represent the City," said Vallandingham.

 

Meanwhile in Memphis, attorneys in a class-action lawsuit challenging the firm’s fees questioned Linebarger’s payment of millions of dollars to a local attorney who helped it win the city contract to collect taxes. After the lawsuit was filed, Memphis ended its relationship with the firm.

 

And in Texas, a partner was indicted in 2012 for covering up donations to a local elected official and his case remains ongoing. More recently, two Linebarger consultants have been at the center of alleged bribery schemes -- one of which is heading to trial and another that is still under investigation.

 

Linebarger says the firm itself has never been charged with committing a crime and the actions of a few individuals aren't representative of its overall business practices. But one former Linebarger partner, who asked to remain anonymous, said some of the firm's tactics for getting contracts made him uncomfortable and didn't always "pass the smell test."

So how does Linebarger keep getting new business?

The firm touts its longstanding work in the field saying: "we are hired and rehired because we are good at what we do."

 

...

 

But others say it's all about the money.

 

Linebarger spends millions on campaigns and lobbying efforts across the country. And it pays big bucks to influential current Texas public officials by putting them on its payroll -- a surprising but legal practice.

 

"They’ve discovered a niche that they can monopolize through political manipulation," said Byron Schlomach, a former fellow at the Texas Public Policy Foundation. "And they’ve become very good at it."

*  *  *
Linebarger's reach is growing...

 

 

Linebarger says it undertakes all of its political activities with "strict adherence to the law." ... "The way you get access is you contribute to political campaigns, you go to fundraisers ... You make friends with these people," he said.

But even if all of the politicians and government agencies end their love affair with Linebarger, there are other private collectors that would be happy to take its place. What is really needed, consumer advocates say, is an end to the special treatment given to government debt collectors.

Until then, millions of Americans are left facing ominous threats and steep fees each year.

 

"They're bottom feeders; that's what they are," said Tom, the Oklahoma tax attorney. "The problem is they're bottom feeders with the power of the government behind them."

*  *  *

 

 

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Sat, 02/28/2015 - 22:53 | 5841401 Stoploss
Stoploss's picture

God Damn Linebarger.

Sat, 02/28/2015 - 23:02 | 5841417 TeamDepends
TeamDepends's picture

HSBC will never get a penny out of us. They know why.

Sat, 02/28/2015 - 23:55 | 5841559 chumbawamba
Sun, 03/01/2015 - 02:06 | 5841756 El Vaquero
El Vaquero's picture

I spent a lot of time on CIC back in the day Chumblz.  Coltfan was a blast. 

Sun, 03/01/2015 - 04:39 | 5841861 Four chan
Four chan's picture

if linebarger is a person he is a dick.

Sun, 03/01/2015 - 09:14 | 5842118 NoPension
NoPension's picture

Better call Saul.
Because sometimes what you need is a "criminal " lawyer.

It's all good, man.

Sun, 03/01/2015 - 11:18 | 5842419 SumTing Wong
SumTing Wong's picture

Fascism at its worst.

Assholes...we need to rise up, people. We have to stop this shit. Nobody else will. What? You think the fat, lazy ass couch potatoes will?

Sat, 02/28/2015 - 23:29 | 5841483 one_hundred
one_hundred's picture

my co-worker's mom makes $87 an hour on the laptop . She has been without work for 8 months but last month her pay check was $15653 just working on the laptop for a few hours. try this website... www.globe-report.com

Sun, 03/01/2015 - 04:40 | 5841863 Four chan
Four chan's picture

how are these buttfucker scammers able to post links to their scams?

Sun, 03/01/2015 - 09:15 | 5842120 NoPension
NoPension's picture

Pay extra?

Sun, 03/01/2015 - 11:19 | 5842421 SumTing Wong
SumTing Wong's picture

I think these motherfuckers work for Linebarger, so they have inside contacts.

Sun, 03/01/2015 - 17:11 | 5843529 Exponere Mendaces
Exponere Mendaces's picture

No different than old retired financial fuckers posting here because they have loads of free time, having extracted their "pound" of flesh from their sucker customers.

Sun, 03/01/2015 - 09:21 | 5842130 GMadScientist
GMadScientist's picture

She helps terrorists launder poppy money.

Sun, 03/01/2015 - 10:11 | 5842225 johngaltfla
johngaltfla's picture

You co-worker's mom does internet webcam porn? With horses?

Mon, 03/02/2015 - 06:13 | 5844967 Gavrikon
Gavrikon's picture

In Germany?  Ingesting fecal matter?

Sun, 03/01/2015 - 10:14 | 5842232 Byte Me
Byte Me's picture

She works 5 to 9 in Bangkok?

Sun, 03/01/2015 - 11:02 | 5842368 Buster Cherry
Buster Cherry's picture

Yeah, she sat on my laptop for a few hours too. Never have fucked a woman for that long.

I did learn one thing from that experience: Charcoal starter will work on crab lice.

Sun, 03/01/2015 - 00:14 | 5841609 F0ster
F0ster's picture

These people won't survive SHTF

Sun, 03/01/2015 - 20:03 | 5843994 The.Harmless.Jew
The.Harmless.Jew's picture

 

 

Linebarger.... 

 

Weird name... Has a strange ring to it... 

 

A bit like "Greenspan" , "Bernanke", "Yellen", "Lew", "Blankfein" or "Rothchild"

 

or maybe, "USURY" or "Money Changers"

 

Either way, fuck the tribe and their DEBT and USURY ridden world.

 

Sat, 02/28/2015 - 22:54 | 5841402 nmewn
nmewn's picture
"The scandals date back to its early days, when firm partners became infamous for using political connections to win contracts and change laws." No! Say it ain't sooo!
Sat, 02/28/2015 - 22:57 | 5841404 wendigo
wendigo's picture

I was just in collections for a $50 debt. Phone company said the rescinded the charge but they really sent it to collections. The collections firm charges a $15 handling fee. Pretty good margin if you ask me. 

Sun, 03/01/2015 - 00:16 | 5841614 InvalidID
InvalidID's picture

It's not as good as you'd think, as you're only getting payment on about 15-20% of all the debt you buy.

Sun, 03/01/2015 - 02:09 | 5841758 El Vaquero
El Vaquero's picture

Sending a delenquent account to collections and selling the debt are two very different things.  Most people who have a debt collector that they're dealing with is a debt collector who is collecting for a third party.  Selling the debt means that people are dealing with a junk debt buyer, and they're a special kind of scum.  Midland is one of the most well known, but there are many.  You want to know what's funny?  Some of those JDBs securitize their junk debt. 

Sun, 03/01/2015 - 12:10 | 5842575 InvalidID
InvalidID's picture

3rd party collections is still only collecting on 15-20% of the debt.

Sat, 02/28/2015 - 22:58 | 5841408 Burt Gummer
Sat, 02/28/2015 - 23:02 | 5841418 SgtShaftoe
SgtShaftoe's picture

That's all well and good, but what about the Petrobras scandal Tyler???

http://www.theguardian.com/world/2014/dec/12/petrobras-scandal-brazilian...

This is the making of a currency crisis. That should be top news. Just talking to a friend who works for a company that is owed 100M$ by petrobras.

Sat, 02/28/2015 - 23:05 | 5841426 Ineverslice
Ineverslice's picture

 

fuck cnn

 

Sat, 02/28/2015 - 23:11 | 5841445 Jack Burton
Jack Burton's picture

Cunt News Network

Sun, 03/01/2015 - 11:10 | 5842395 Buster Cherry
Buster Cherry's picture

Communist News Network

Sat, 02/28/2015 - 23:09 | 5841430 Jack Burton
Jack Burton's picture

I understand that private debt collection is big business in the medical sector. No sector has as many outstanding bills as medical services. Billions of unpaid medical bills litter the books of all health care providers. One way to get some cash in hand and to get these off the books is to SELL the debts to Private Debt Collectors, they pay a % of the bill to the medical provider, and then OWN the bills. The game is to collect much more in debt payments than you paid to buy the bills. I do not know what the standard % is, but it probably is 20-30% at most.

I know several people who were waiting for their insurance to pay their covered health care bills, but were slow in paying, and their debts got sold to collection agencies. So all of a sudden, they had these rabid dogs all over them. Needless to say, once these mad dogs have got a bill on you, they do not care fuck all if the insurance finally did pay the outstanding bill to health care provider. You get caught in the mix up! The bill was sold, but then paid anyways by insurance to the health provider, the very one who sold the bill to collection! You get it? You are trapped in a fucked up sytem, nodoby knows or cares WTF is going on. It may take months and a lawyer to clear your name, and get collection off your ass. While the health care provider will not help you or even contact the bill collector to say the bill is now paid. Man, it is fucked up! All because insurance took too long to make good.

Sun, 03/01/2015 - 00:14 | 5841608 InvalidID
InvalidID's picture

 

 This is bullshit. It takes over a year for a medical bill to get sold to collections, and the provider will call you a dozen times to try and settle up with you, and will call your insurance too if you have it. They'll deal with your insurance for as long as it takes and will hold the bill if they think they are getting paid. If you don't have insurance they'll call you a dozen or so times and mail you, trying to get you into payments. Then, if a bill is sold to a collection agency the provider can not accept ANY payment from anyone. They don't own the bill anymore.

Sun, 03/01/2015 - 15:53 | 5843325 Socratic Dog
Socratic Dog's picture

Kool Aid for breakfast?

Sun, 03/01/2015 - 17:05 | 5843510 N2OJoe
N2OJoe's picture

You guys pay medical bills? I just put Carlos Gomez as my name with no address and I get all the meddies I juant 4 free!

Sun, 03/01/2015 - 13:49 | 5842868 Buster Cherry
Buster Cherry's picture

I'd say at that point the provider has made you the enemy and it needs to be taken out Of his ass.
There are ways of.making them feel great pain from a distance.

Sun, 03/01/2015 - 14:02 | 5842913 InvalidID
InvalidID's picture

 

 Holy shit, you think you deserve free.... What? If people expect you to pay for services they are the enemy?

 

 Move to Russia, you'll be happy there.

Sat, 02/28/2015 - 23:10 | 5841442 Creepy A. Cracker
Creepy A. Cracker's picture

Bookmarked for future reference.

Sat, 02/28/2015 - 23:16 | 5841453 Son of Loki
Son of Loki's picture

" Merikans are not Deadbeats! "

 

Barry said so himself.

Sat, 02/28/2015 - 23:33 | 5841495 kingstukie
kingstukie's picture

Haha

Show me the contract....

Sun, 03/01/2015 - 00:01 | 5841575 world_debt_slave
world_debt_slave's picture

go after the low hanging fruit

Sun, 03/01/2015 - 00:06 | 5841587 Lumberjack
Lumberjack's picture

Is Linda Green from Texas? I know Enron was...

Sun, 03/01/2015 - 04:47 | 5841871 Bearwagon
Bearwagon's picture

Linda Green is from anywhere you'd want her to. Hell, she even is a man if you like her to be. She's really chameleonic. And she's many ...

Sun, 03/01/2015 - 00:08 | 5841597 InvalidID
InvalidID's picture

 

 I've done a lot of work collecting debt. I can tell you exactly why these guys get so many contracts. They get the fucking money.Which is what they are suppose to do. If they bend the rules a little and get fined, cost of doing business...

Sun, 03/01/2015 - 03:28 | 5841806 El Vaquero
El Vaquero's picture

You should probably, at the very least, give a general description of why you are here, because there are few places that you will be less popular than here as a (former?) debt collector.  I will straight up state it:  I fucking hate debt collectors.  I've been on the receiving end of that shit, and it's not pleasant.  I haven't asked for what Webrecon has on me, but I'm pretty sure I'm on Webrecon.  We know what debt is here and we aren't happy with it.  Or should I say, we know what currency is here, and we aren't happy with it?  Because being a (former?) debt collector, you are (were?) part of that currency is debt system. 

Sun, 03/01/2015 - 04:33 | 5841854 boattrash
boattrash's picture

What's the solution? I believe that when enough people pay them with copper-jacketed lead, we will see change.

Sun, 03/01/2015 - 13:19 | 5842777 Vooter
Vooter's picture

Like vermin everywhere, it's the only thing they understand.

Sun, 03/01/2015 - 12:20 | 5842604 InvalidID
InvalidID's picture

 

 Ahh, so you're one of those eh? You think it's ok to borrow money and never pay it back? There's a place for everything, even in a gold standard system you'd have debt collectors. If you sign a contract to borrow money (or gold?) and you don't pay it back, what's the recourse? Someone has to track you done and get that money back, and of course you don't like it. If you had (what you feel is) enough to pay it back you would have, right? It's a shitty situation to be in, but it's a shitty situation for the people you owe money to as well.

 Now I work in biz to biz collections because it's less stress and more money.

 

 But explain why I'm here? Are you kidding me new guy? I've been here since the beginning pretty much. I've worked in finance in one form or another for a long time and I understand what's being said here. Like the original Tyler, I came here from a finance background to blow the whistle on some of the shitty things happening behind the scenes.Why are YOU here? To bitch about how bad the 'man' is fucking you over? Fuck that, handle your business and the man isn't an issue.

 

 (As an aside, webrecon? Junk.)

 

Sun, 03/01/2015 - 13:04 | 5842729 El Vaquero
El Vaquero's picture

I got sued because the bank kept shitty records.  They made claims that were outright false, and the documents that they filed were internally inconsistent.  I still don't know what the fuck really happened with their shit.  On top of that, modern banking is a fucking ponzi scheme.  The system is corrupt to its very core, and as a debt collector, you are part of that.  So fuck you.  Seriously, fuck you.  You are part of the fucking problem.  You are corrupt. You help keep parasites in business.

 

And you should pay attention to Webrecon.  I have cost some debt collectors and a TBTF tens of thousands of dollars.  If you think it's junk, I can tell right away, you've never been against somebody who knows the consumer laws and is litigious.  I'll make your life fucking hell.  I've already done it to others who fucked with me.  As far as I'm concerned, you deserve it for supporting a corrupt system.

Sun, 03/01/2015 - 13:48 | 5842864 InvalidID
InvalidID's picture

 

 Oh I've dealt with litigious debtors. Thing is I don't give a fuck, it's not my money and I'm not the one who has to pay it. You sue the company I work for, what's that mean to me? Cost of doing business as far as I'm concerned.

 You know the system is corrupt and so do I, but the fix isn't to fuck up your own credit. That's retarded.

 

 How about we start our own bank instead?

 

 

Sun, 03/01/2015 - 14:00 | 5842909 El Vaquero
El Vaquero's picture

You can be sued personally.  There is nothing in the FDCPA that says that only companies can be sued.  If you violate and the person has evidence that you fucked up, and then you give the Nuremberg defense, you will be fucked. You are supporting a debt-is-money system when you collect debts. 

 

And I didn't fuck up my credit.  My credit score, which I think is also a scam, went up to over 760 after I started sending certified court documents out the credit reporting agencies after that shit.  I have no debt.  I also stopped receiving credit card offers.  When I was getting sued, I'd get a couple every week.  When I started suing, none.  I'm happy with that.  I have not received a single credit card offer for a couple of years.  It's funny how they send those credit card offers out to people who they think won't be able to pay.  I want nothing to do with any bank.

Sun, 03/01/2015 - 14:06 | 5842935 InvalidID
InvalidID's picture

 

 A collectors fines are capped at 1k per violation, and unless they do some seriously fucked up shit (and then they deserve it) the courts almost never fine them. I've seen some seriously fucked up shit too, believe that. Even I draw the line somewhere, play by the rules, follow FDCPA and it's all good for me, as a collector.

 

 And this money is debt argument is retarded. If we used gold backed, or some other 'real' money (which as a Libertarian I totally support) you'd still have people calling you to collect debt you defaulted on.

Sun, 03/01/2015 - 14:14 | 5842969 El Vaquero
El Vaquero's picture

Yet there is nearly $60 trillion in total debt in a country that has a GDP of $18 trillion and one of the many mechanisms for creating new "money" is lending it into existence at interest.  It is a ponzi scheme.  The one time that the debt decreased in the past 50 years, we got TARP, AIG's bailout, QEs 1, 2 and 3 and a bunch of political bullshit.  You are supporting a ponzi scheme.

 

The FDCPA is only capped on statutory damages.  On actual damages and punative damages, it is not capped.  I've seen multimillion dollar awards under the FDCPA.  Then there are state laws to contend with.  On top of that, attorneys are pricey, and the other side's (for you) attroney's fees are included in the FDCPA.  If they sue, and they are successful on proving even a mild violation that results in only $1k in statutory damages, you still get to pay their attorney. 

Sun, 03/01/2015 - 14:25 | 5842998 InvalidID
InvalidID's picture

 

 I can't speak for all collectors, but I'd never work at a company that didn't indemnify me, provided I followed company policy. I've been sued 6 times in 5 years as a collector, never lost a case and never paid a fine. Mostly I think because I know how to follow the law, but also because I had company paid lawyers.

 

 I've only worked 3rd party collections mind you. Debt buyers are pretty shady bottom feeders and not for me. I liken them to ambulance chasers and used car salesmen.

 

 As for supporting a scheme... Do you spend money at all? Pay taxes? You support the same fucking system. Unless and until you and I can create a better system we're all supporting this one. And I say again, will people loan money in the new system? If so, someone will be there to collect on the defaulted debt.

Sun, 03/01/2015 - 13:16 | 5842768 Vooter
Vooter's picture

"You think it's ok to borrow money and never pay it back?"

LOLOLOLOLOL! Here in the criminal cesspool known as the United States of America? ABSOLUTELY. Why not? Am I overlooking some "ethical standard" that applies to some things but not others here in the land of apple pie and Chevrolets? Jesus christ...you're hilarious. The United States government has delivered a two-part message to the American public, and we all hear it loud and clear: WE ARE ON OUR OWN and ANYTHING GOES. Enjoy!

Sun, 03/01/2015 - 13:34 | 5842819 El Vaquero
El Vaquero's picture

No shit.  Our paragon of ethics, the US government has only borrowed $18+ trillion, and nobody who is realistic expects them to pay it back.  What a fine example we have to live by.  The system was designed in such a way that there was going to be more debt that could ever be paid back and bankers skim off of that.  So do junk debt buyers.  So do debt collectors.  It's corrupt.  Fuck'em. 

Sun, 03/01/2015 - 13:51 | 5842879 InvalidID
InvalidID's picture

 

 The age old, he started it argument. Your mom didn't buy into that, and neither does any other grown person.

Sun, 03/01/2015 - 14:02 | 5842915 El Vaquero
El Vaquero's picture

What, that there is more debt in the system than will ever be repaid?  My mom actually does buy that argument, and no person who has seen the actual numbers can give a rational argument to the contrary. 

Sun, 03/01/2015 - 14:09 | 5842947 InvalidID
InvalidID's picture

 

 Does your mom pay her bills though. Seriously, you can't say shit like the government lies so it's ok to steal from banks as an argument. That works both ways, I'd sure hate for people in Congress to look to China and say.... Hey, they do it....

 

 All that is to say you can't fight evil with evil....

Sun, 03/01/2015 - 18:53 | 5843824 MeelionDollerBogus
MeelionDollerBogus's picture

Most corporations believe that; and get it.

We shouldn't be held to a different standard. Write down the debt, collect $0 to 5% and get not a penny more.

Can't make unequal standards, that's dishonest and de-stabilizes the economy.

Sun, 03/01/2015 - 09:05 | 5842105 Wahooo
Wahooo's picture

I'm glad we were able to flush you out.

Sun, 03/01/2015 - 13:06 | 5842732 Vooter
Vooter's picture

Why do dumbasses like you never understand that "bending the rules" GOES BOTH WAYS?

Sun, 03/01/2015 - 13:51 | 5842877 El Vaquero
El Vaquero's picture

He'll bellyache the first time someody applies the rules to him.  It's what they all do.   No rule bending will be required.  There are all sorts of ways to fuck debt collectors under existing consumer law that people don't know about. 

Sun, 03/01/2015 - 13:57 | 5842900 InvalidID
InvalidID's picture

 

 I never complain when someone plays by the rules. Think about it, if you're in collections you've already 'bent' the rules by not fulfilling your end of a contract.

Sun, 03/01/2015 - 14:16 | 5842980 El Vaquero
El Vaquero's picture

Or you got fucked by bad record keeping.  I've got physical proof of that in the filing cabnet not more than 3' from me.  But again, the system is a ponzi scheme.  Any 'contract' is unconscionable and should not be enforced. 

Sun, 03/01/2015 - 14:29 | 5843018 InvalidID
InvalidID's picture

 

 If you got fucked by bad record keeping then you're the exception and you should get PAID. I've seen it, a friend of mine got raped by BofA over a mortgage he'd paid off years ago. Someone sold the mortgage to BofA (after it was paid off... WTF?) and BofA fought him for 5 years trying to foreclose. He won in the end, and got serious money for his fight.

 

 The unconscionable argument is where we'll never agree. I find that argument retarded. If you agree to terms and YOU (not the bank) break the terms you get fucked for it. It SHOULD work both ways.

Sun, 03/01/2015 - 18:50 | 5843808 MeelionDollerBogus
MeelionDollerBogus's picture

And yet no one is collecting on B of A for the thousands of illegal foreclosures they did including homes which had no mortgage to any bank. Once the home & all assets inside are seized this often leaves a person without the money to pay lawyers or collectors.

Sun, 03/01/2015 - 19:45 | 5843950 Joe Sichs Pach
Joe Sichs Pach's picture

This continued talk about contracts and rules is all well and good but the problem is, as we all know, there are two separate systems for the banks and the debt slaves.

Let's go back to the mid 2000's.  JSP is smothered in propaganda to buy a house - "it's his right".  The lending rules are changed, modified and made "more flexible" so JSP can buy the home he has a right to own.  

JSP is then systematically levered up by the banks with his new home, credit cards and an economy that has him making good money, paying his bills and holding up his end of the contract.

SHTF in 2008, banks are revealed to be insolvent - they're not holding up their end of "the contract" with their regulators, right?  Banks get bailed out - fancy balance sheet work, off-balance-sheet unloading of bad debts, ability to borrow unlimited funds at essentially 0% and they're OK.  

Economy flushes, JSP gets squeezed and can't hold up his end of "the contract".  He then shifts all his bad debt out of the household, has the ability to borrow unlimited funds at essentially 0% to make himself whole again while putting the pieces back together...wait a second...Nah...JSP gets fucked instead! 

Your average American debt slave has ZERO access to anything that will make him whole again.  But wait, it's up to him to uphold his end of the contract, right?  What a dirtbag JSP is!  That piece of shit should have known better.  Shouldn't have gotten into a situation he knew was going to implode, right?  That fucker should pay!  Bullshit.

Two fucking systems exist my friend, and the rules are different for the parties in those systems.  JSP gets fucked every which way and that's part of the plan.

What happens now that the banks are "solvent" again?

The sell off JSP's "bad debt", right?  Or, they get the friendly, local debt collector to file suit to make sure JSP holds up his end of the contract.  

Things too far gone and it's not worth suing?  Don't worry about it!  Let the big bank identify that debt as being "Cancelled".  What happens then?  JSP is now on the hook for that entire amount as INCOME in that tax year.  JSP now gets fucked to the tune of $XXX owed to the IRS.  They always get their pound of flesh...

Not collected on?  Not cancelled?  Fuck it, sell it to the bottom feeding junk debt buyers to get a couple bucks at least, right?  Let those fuckers pursue JSP to their hearts content!

Yeah, you're right.  The American debt slave should hold up their end of the "Contract".  The banks are setting a great example and their governmental enablers are right there allowing them to do it.  Fuck it all.

Sun, 03/01/2015 - 13:54 | 5842893 InvalidID
InvalidID's picture

 

 Oh we get it, we deal with it all the time. Well, I don't really anymore, as I said I'm biz to biz now. Consumer debt is a shitty work environment, biz to biz is less stress and more money.

 

 

Sun, 03/01/2015 - 00:09 | 5841599 Dre4dwolf
Dre4dwolf's picture

I find it interesting how people make fun of people for believing in god, but those same people turn around and believe government actually exists.

They can only steal from you if you let them, government does not exist, its just a few people in a building trying to figure out how to make use of this made up entities fear factor to extract wealth from as many people as possible.

 

The most religious people on earth are tax payers as religion is "belief" and these people "believe" that this entity needs their money more than they do.

 

Sun, 03/01/2015 - 05:58 | 5841941 bozoklown
bozoklown's picture

i'm not sure you exist

Sun, 03/01/2015 - 08:11 | 5842044 NidStyles
NidStyles's picture

I'm more sure of your existence, then that of the government.

Sun, 03/01/2015 - 09:23 | 5842132 GMadScientist
GMadScientist's picture

Tell it to the peeps at Ruby Ridge and Waco.

Sun, 03/01/2015 - 09:35 | 5842154 ultramaroon
Sun, 03/01/2015 - 18:44 | 5843787 MeelionDollerBogus
MeelionDollerBogus's picture

What I believe is they have machine guns.

Solution: get MORE guns. And let's not forget the guillotines.

Sun, 03/01/2015 - 00:26 | 5841638 Seasmoke
Seasmoke's picture

If you stopped paying, for whatever reason, why Would you turn around and pay the scumbag debt collector. Tell them to go fucK themselves. Grow some balls people !!!!!

Sun, 03/01/2015 - 02:11 | 5841761 DipshitMiddleCl...
DipshitMiddleClassWhiteKid's picture

I interviewed at one of these places and it was in the central Texas area. They specialize in student loan debt and the interviewer told me she made a woman cry over the phone beause her daughter had to repay her loans that she took out for some useless masters degree.

 

It's so ridiculous how these people are ruining their lives over debt and its putting them out on the street, while these thugs prey on them.

 

DO NOT GO INTO DEBT PEOPLE

 

AND IF YOU HAVE DEBTS NOW, DO EVERYTHING IN YOUR POWER TO PAY THEM OFF AS FAST AS POSSIBLE. IT'S BETTER TO BE BROKE THAN IT IS TO BE IN DEBT.

 

 

Sun, 03/01/2015 - 12:22 | 5842610 InvalidID
InvalidID's picture

 

 Was this company in San Angelo? I think I  may know who you're talking about.

Sun, 03/01/2015 - 13:22 | 5842781 Buster Cherry
Buster Cherry's picture

Why are you protecting them by keping them anomynous?

 

Who are they, what's their address and what was the name of the employee you interviewed with?

 

Inquiring minds want to know. I would love to torment a debt collector.

Sun, 03/01/2015 - 13:49 | 5842870 InvalidID
InvalidID's picture

 

 I don't know for sure, but I think it PFMT.

Sun, 03/01/2015 - 02:22 | 5841768 joego1
joego1's picture

We need to sick Jihad Johnny on these fuckers.

Sun, 03/01/2015 - 05:17 | 5841909 prymythirdeye
prymythirdeye's picture

Credit card debt is unsecured.  Learn how to handle these assholes.

Sun, 03/01/2015 - 07:01 | 5841972 Atomizer
Atomizer's picture

So is the new debt ceiling debate, DHS, FCC, and Amnesty. It's passed on as a unsured Executive Order Obama credit card with reward travel points to Hawaii and Kenya. Think about that for a moment. Hol Lee Fok has hanked rif wusia.

Who holds 70+% of US Treasuries? Kommander in khief rone Opereration K'hawaii hive-Oh's..

Sun, 03/01/2015 - 12:30 | 5842638 InvalidID
InvalidID's picture

 

 This is solid advice. If you don't care about your credit score who gives a fuck about unsecured debt. The only things you need to REALLY worry about is student loan debt (BRUTAL!!!) your mortgage, and taxes. With those things they have leverage, anything else,,,, fuck em.

Sun, 03/01/2015 - 06:13 | 5841950 pops
pops's picture

Tenacity is the word.  I divorced my wife nearly 19 years ago, have had no contact with her since and these badgers are STILL calling and sending collection notices on credit card debt she ran up since. ($12,000.)

 

Sun, 03/01/2015 - 06:35 | 5841960 Atomizer
Sun, 03/01/2015 - 07:39 | 5842010 malissarood
malissarood's picture

Hello everybody, i am Malissa, God has bless me with two kids and a lovely husband, I promise to share this because of God favor in my life, 2 months ago I was in desperate need of money so I thought of having a loan then I ran into wrong hands who claimed to be loan lender not knowing he was a scam. he collected 2,000USD from me and refuse to email me since then I was confuse, but God came to my rescue, one faithful day I went to church after the service I share idea with a friend and she introduce me to Mr. David Wilson, she said she was given 52,000.00USD by Mr. David Wilson who is the C.E.O of (CREDIT PREMIER INTL), so I decided to contact them using the below email: {credit.permier001@gmail.com} ... And to my greatest surprise i got my loan of 96,000.00USD... So if you are really in need of a loan, i would advise you to contact Mr. David Wilson because he is a Man of his worlds.. Thanks

Sun, 03/01/2015 - 08:13 | 5842046 NidStyles
NidStyles's picture

A man of his worlds eh? Just how many worlds does he have?

Sun, 03/01/2015 - 09:24 | 5842136 GMadScientist
GMadScientist's picture

A creature so dumb only a loving God could care about it.

Sun, 03/01/2015 - 10:50 | 5842340 Buster Cherry
Buster Cherry's picture

You must be really rockin his world Malissa, but that cream sauce will only go so far in greasing the tonsils.

Sun, 03/01/2015 - 12:15 | 5842590 franciscopendergrass
franciscopendergrass's picture

A Man of his worlds?

Is that the best English you got you Western African scamming fuck!

Sun, 03/01/2015 - 18:42 | 5843782 MeelionDollerBogus
MeelionDollerBogus's picture

I dunno.... I kinda have this trust thing going with my usual Nigerian Prince contact.. I'll consult with him and get back to you

Sun, 03/01/2015 - 09:14 | 5842114 overmedicatedun...
overmedicatedundersexed's picture

just read a book on debt collection business- was amazed, they buy lists of debt often yrs old for 4 cents per debt, if they collect 10 bucks - well it's all profit business, they hire crooks just out of jail, drugged out drop outs, anyone to collect over the phone..and yes people pay off, even after 10 yrs - just a few payments and these debt collection co's are making 200% or more. it's a racket like so much of our out sourced economy today.

Sun, 03/01/2015 - 14:17 | 5842984 InvalidID
InvalidID's picture

 

 You can't be a felon and collect debt... At least nowhere I've ever worked. But I've never worked for a company that bought debt as it's a real bottom feeder business.

Sun, 03/01/2015 - 11:07 | 5842386 Buster Cherry
Buster Cherry's picture

Storied like this make me want to ask all ZH readers to call this law firm on their lunch hours and ask the admin that answers the phone if they prefer doggy style.

A few milliion calls like that may send a message....or melt the switchboard.

These lawyers have homes right? And children?

Sun, 03/01/2015 - 11:48 | 5842500 roadhazard
roadhazard's picture

I would think debt collectors would have a hard time these days when you can change your phone number at the drop of a hat. And if you live in the woods and they come to your home you can whip out the 12 ga. and ask them what the fuck they think they are going to fuckin' do. If they call your work then take your 12 ga. and go see them and ask them if they still want to fuck with you. There must be way easier fish to fry than you.

Sun, 03/01/2015 - 11:51 | 5842509 sessinpo
sessinpo's picture

Money borrowed is money owed. But debt collectos, shoot on sight.

Sun, 03/01/2015 - 14:45 | 5843082 StrikerMax
StrikerMax's picture

Stop paying Taxes , it's the only solution for Everything.

If faced with Many Millions of collections Govt could not possibly make Any collection.

It's time for a compelte Tax Blackout!

Sun, 03/01/2015 - 15:45 | 5843299 Chuck Knoblauch
Chuck Knoblauch's picture

Are they publically traded?

Mon, 03/02/2015 - 08:50 | 5845095 Stevious
Stevious's picture

We even make our inmates (prison) into forced debtor servitude.

Last year I helped out a nice fellow who was homeless.  He painted my house as an "independent contractor," and did a good job.

But he got into an argument one night with someone--police were called and *poof* into prison (we call it jail here) he went, utable to leave because he could not post $200 bail.

Two days later he was released and went back to painting.

He griped that the two dollars and change was taken from him, and not returned. What was returned was a debit card which, you guessed it--had to be signed for.

In short within a month, fees on that card would have put him into negative territory, within a year he would have owed, I'm not sure but possibly $400 unless he returned (closed the account) it.

So with my help he did, return receipt manner,  but had he not, here's this homeless guy who went from positive $2 to a enforcable debt of many hundreds.

Talk about how low has our system gone.  If vulturing (acting like a vulture) is not a word, it should be.

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