What do debt collectors in Buffalo, NY have to do with you? It turns out that debt collection is one of the thriving industries in Buffalo. And if you get a phone call about debt you owe, it may just be coming from there.
The October 11 issue of the New Yorker magazine has a really terrific article by Jack Halpern titled, “Pay Up: A debt collector struggles to stay out of debt.” (Click here to read the abstract on the New Yorker website. Or get in touch and I’ll be happy to send you a photocopy of the article you want to read the whole thing and don’t have access to the issue.)
In addition to putting a human face on the debt collection business, it also does a nice job of revealing some of the behind the scenes workings. For example, “Jimmy” (the debt collector who is the subject of the article) has his own small debt collection business and has to buy “paper” from middle men. “Paper” means debts that have not been paid. A bank or credit card company or payday loan business often sells its “paper” to debt collectors for much less than the listed amounts. The ball is then in the debt collector’s court to try to get as much as they can for the paper.
Additionally, there’s a hierarchy of paper. Paper from American Express is more valuable because it’s easier to collect. But Jimmy explains that’s not an option for a small shop like his. He generally gets paper from brokers who buy and sell paper from payday loan companies.
Particularly interesting is a comment that frequently the same paper gets sold multiple times to different debt collectors. Hence the reason why you might get called by different people about the same debt. In one instance, Jimmy has a phone conversation with someone who claims she already paid that debt to another debt collector. Jimmy correctly points out that she should have made sure she got something in writing. As Jimmy notes, there’s not a lot of regulation of the business. And there frequently aren’t enough resources to enforce whatever regulations there are.
The article also makes the point that debt collectors facing their own financial difficulties are more likely to lie or use any means necessary to intimidate a debtor into re-paying a debt.
Will reading this article help you avoid the debt collector? Perhaps not. But being aware of the dynamics may make dealing with the process and calls feel a bit less stressful.
If you really have a New York debt collector problem on your hands and need help, please feel free to contact me for a free initial consultation.
Contact Bruce Weiner, Esq.
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Go to fair debt collection practices act to learn more about Rosenberg Musso & Weiner LLP and/or to set up a free consultation.
