News broke recently that the Consumer Financial Protection Bureau (“CFPB”) fined the nation’s two largest “debt buyers” tens of millions of dollars for improperly collecting on the debts they purchased. The allegations were pretty straight forward: these companies were telling debtors that they could be sued on a debt when, in fact, they likely could not because the time to sue had expired.
“Debt collector guilty of too aggressive tactics" is a dog bites man story if ever there was one. The real story, we think, is found buried in the eighth paragraph of the New York Times story:
Debt buyers purchase delinquent accounts for pennies on the dollar, but may try to collect the full amount of the debt claimed by the original lender. The two companies’ combined have bought the rights to collect more than $200 billion in defaulted customer debts on credit cards, phone bills or other accounts.
Most Americans are debtors, not creditors, and most Americans need to be protected from unscrupulous collectors. No argument there. But there is a growing group of Americans – between 10 million and 53 million, depending on who you ask – that are actually creditors some of the time.
Those are freelancers, independent workers and small businesses who frequently go unpaid for their work. So how are freelancers effected? Are their debts part of the $200 billion purchased for collection?
Why not? Because no one has found a good way to get all that debt in one place, and you can't sell the debts individually (hence the $200 billion). Indepayment is the first company to aggregate debts owed to freelancers, independent workers and small businesses to allow for sale to debt purchasers after "charge off."
If you’re interested in learning about Indepayment’s “charge off” services, register an unpaid debt with us. We will try to collect, and only charge you if we do.
If we can't collect, you can then chose to send it to a debt collector or charge it off (you can also charge it off after the debt collector attempts to collect). Your debt may then be eligible for sale to a debt purchaser as part of the next $200 billion.
Maybe the debt purchaser can collect. Maybe they can’t. Hopefully they will act lawfully. The neat thing is that the debt no longer your problem. The debt, and the risk of non-payment, is off your books, and onto theirs.
That is one way that Indepayment turns your liability into an opportunity.
Thanks for reading and thanks for your trust.
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