I could be wrong, but I think this law may be unconstitutional. I think it’s pretty settled case law that they have to prove you owe the money – but then again, the world’s turning upside down, so who knows?
Arizona Gov. Jan Brewer has approved legislation making it easier for debt collectors to go after defaulting consumers and small businesses.
Brewer signed House Bill 2664 into law today. The measure allows collection agencies to use final billing statements as a basis to show amounts owed and interest rates as they seek court judgments and wage garnishments.The bill was favored by debt collectors, which buy delinquent accounts from banks and credit card companies for pennies on the dollar, but receive only minimal information from those sources. It can be difficult and expensive for the collection companies to get additional information on the defaulting consumers and business owners.
Debt collectors’ business model depends on them collecting money from the account holders whose information they buy. The new state law makes it easier on them if they can obtain final billing statements from the banks and credit card issuers.
Basically, they make shit up. But so much for law and order in Arizona!
Outrageous! They can now generate a piece of paper with a number on it and prosecute you without any original documentation showing the actual charges underlying their allegation? I have a credit report problem with a retail store showing YEARS of false “balance due” late payments etc on an account I never opened (and so not only is the “balance due” false, the payments were never “late” since I hever had any account to pay “on time”) – of course, there is NO paperwork showing my signature or other indication that I ever opened such an account, and NO record of what purchases were made. If this were made the law here in PA I don’t know what I would do to fight it!
How do you defend yourself in a matter like that?
@ Tracey: The Arizona law is an abomination, but it works primarily against debtors who default by failing to contest legal process. If sued, answer with a denial, and if its really not you counterclaim for abuse of legal process. They will try to dismiss ASAP. The scam really depends on your surrender.
Oh, looky here, what is this in my hand?
Why it’s paper showing an overdue account for one “Jan Brewer”! She seems to be in debt to the tune of $1,345,645.12. Well, that’s what the paper says, so it *must* be right.
Perhaps I should sell the paper to a collections agent, the more unscrupulous and violent, the better. Ten cents? Any bidders?