Product: Debt collection

Dear CFPB, I understand that this is another complaint to add to the hundreds of thousands complaints already in your office. I am sure, just like in our situation, millions of Americans were hit hard by the recession and the complaints piled up year after year. Ten years later, when maybe, just maybe, people have started to rebuild and get a little ahead, like in our situation, we have another unprecedented economic downturn. Yet, the secondary debt collector market is stronger than ever and as a consumer I am requesting that they are held accountable. I am hoping you will provide me with some ray of hope that consumers will be provided more protections from these unscrupulous businesses. 


" The Federal Trade Commission ( FTC ) now receives more consumer complaints about debt collectors than about any other single industry. The agency received 897,655 complaints about debt collection in XX/XX/XXXX, more than triple the number of complaints it received the previous year. The Consumer Financial Protection Bureau ( CFPB ) received 88,000 debt collection complaints in XX/XX/XXXX.  In a national survey of consumer experiences with debt collectors, the CFPB found that one in four consumers contacted by debt collectors felt threatened. '' The company we are dealing with is CACH LLC., a vulturous, predatory and litigious company. 

Our Story : In XX/XX/XXXX, we purchased an air conditioner from XXXX  XXXX XXXX using credit from XXXX XXXX XXXX, changed to XXXX XXXX XXXX XXXX  in XX/XX/XXXXand now, XXXX  XXXX.. The retail establishment was made whole by XXXX XXXX XXXX. In XXXX, due to the economic downturn, our lives drastically changed ; losing our jobs and all of our savings, retirement and education funds for our three children, two of whom were in college at this time. 

After several attempts to receive a modified payment plan with XXXX, which by their agreement they offered, were all ignored. They then charged off the account, before requiring immediate payment of the entire account, received a tax loss and probably collected bad debt insurance. Then sold to CACH LLC in XX/XX/XXXX, for pennies on the dollar, ~ {$700.00}. CACH LLC hires the XXXX  XXXX  XXXX  XXXX XXXX, states that the amount owed is {$9200.00} with an interest rate of 26.99 % plus fees. Certainly a large profit margin for CACH LLC. 

At this time, being sued by a secondary market debt collector was unchartered territory to us. We were in the midst of rebuilding our lives, receiving unemployment, applying for jobs and starting a small business simultaneously. We depended on assistance from family and friends to keep our home and pay our bills. Not understanding the magnitude of this judgment, several attempts were made to offer a modified payment plan with the XXXX XXXX XXXX XXXX XXXX, also nonresponsive. 

" Some debtors fail to show up in court because they can not get time off from work or secure child care. Some are confused by notices, even having received several in the mail. Many are unaware of the consequences of missing the court date. In cases brought by companies that have purchased the debt from the original creditor, the plaintiffs name on the summons will be unfamiliar to the debtor, creating more confusion. According to consumer rights advocates, some debt collectors repeatedly request trial continuances, postponing the case whenever the debtor shows up in court and then moving for default judgment the one time the debtor fails to appear. Even when aware of the suit, debtors almost never have lawyers and dont know how to defend themselves in a legal proceeding. There is no constitutional right to an attorney in collection actions and civil contempt actions, and most debtors can not afford to hire one. As a result, debtors are represented by lawyers in fewer than 2 percent of collection cases. '' Next we hear from XXXX XXXX XXXX, who renewed the Default Judgment, XX/XX/XXXX, and, by a newly updated statute, they are able to extend the judgment for an additional five years, beyond the statute of limitations ( six years in Arizona ), which seems contradictory and unlawful. The amount is now {$15000.00} with fees and interest. In addition, there is a lien filed with the Recorder 's Office against our home, which also seems unlawful based on Homestead laws, more contradictions and less protection for the consumer. 

" The default judgments are routinely padded with interest charges and attorneys fees, so the amounts end up being far more than the original debt. Once a debt collector gets a court judgment, it gains the power to garnish wages, seize property, clean out bank accounts, or put a lien on a home. '' On XX/XX/XXXX, we received a letter from XXXX XXXX XXXX  XXXX stating that they are the attorneys representing CACH LLC. This would be the third law firm in regards to this case. We were not familiar with this new firm, as we had not received any communication regarding Substitution Of Counsel. 

Upon receipt of this letter, we decided to look closer at the entire case and learned the following : CACH LLC, the original secondary market creditor and according to findings, due to their bankruptcy with their parent company, XXXX XXXX, in XX/XX/XXXX, much of their portfolio was sold to Resurgent Capital Services ( Sherman Financial Group, LLC ), Resurgent is currently claiming they only service the debt. 

This leads to consulting with attorneys to see how to respond at this point in time. The advice was they would be happy to negotiate it on our behalf at 60-70 % of the amount claimed plus their fee, $ XXXX {$1500.00}. So, {$10.00}, XXXX plus their fee to pay to CACH LLC or Resurgent and now XXXX XXXX   XXXX  XXXX. for a debt, passed the statute of limitations that they paid ~ $ XXXX+ eight years ago. This negotiated amount is still obscene and is not affordable to us. 

Not happy with the advice, we decided to return to the beginning and went to the original court, XXXX XXXX XXXX, XXXX, AZ and obtained a copy of the filing by the XXXX  XXXX  XXXX  XXXX XXXX. Upon reading the documents, researching and learning the complexities of the secondary debt collector market, we decided to File the Motion To Set Aside/Vacate, Pro XXXX, as we do not have the funds to pay an attorney, the judgment based on the unlawful and inaccurate information filed with the court. Unfortunately our motion was denied, which seems par for the course. 

It seems, according to my research : " The Debt Collection Industry is a multi-billion dollar racket run throughout the country. Just as a photocopy of a {$100.00} bill is evidence of a {$100.00} bill, it is not the actual Federal Reserve note ; its a copy that doesn't spend. Yet, debt collectors are collecting billions on photocopies of debt. That is, evidence of debt, not the debt. The evidence of debt is being sold for and purchased for pennies on the dollar, while debt collectors/attorneys are collecting on the full face value plus penalties and attorney fees. '' " The Courts have been rubber-stamping these transactions for so long that it has now become custom to rubber stamp. A custom that is at its best, difficult to overcome. The Courts don't like having to actually consider the facts and evidence, it is so much easier to hand out your money than for them to behave according to their own rules of procedure and evidence. The Courts want you to prove a negative that you dont owe. While refusing to require the Plaintiff to prove the charges he has brought against you. '' " According to the Federal Trade Commission ( FTC ), the majority of cases on many state court dockets on any given day are often debt collection cases. In many states, companies that bought debts from original creditors file more civil lawsuits than any other type of plaintiff. When judges automatically award default judgments without scrutinizing the merits of debt collectors claims, these judgments may be for the wrong amount, for debts that are not subject to collection, or against the wrong defendant. The FTC found that the information received by debt collectors is often inadequate and results in attempts to collect from the wrong consumer or to collect the wrong amount. '' " Once a lawsuit is filed, the process is stacked against the defendant, whether the amount is owed or not. Debt proceedings are plagued by substantial due process deficiencies, including failure to serve the defendant with adequate and legal notice of the suit, lack of evidence of the underlying debt, and falsified or improper affidavits such as robo-signed affidavits. Beyond that, debt collectors benefit from expedited judicial process in small-claims courts, which provide limited due process protections to debtors. '' " Courts overburdened with cases churn through these collection lawsuits with astonishing speed and minimal scrutiny. The vast majority of theman estimated 90 percentconclude in a default judgment against the defendants, in which the debt collector automatically wins because the defendant did not contest the case. Most did not appear in court to defend themselves or respond to the litigation at all. '' From our extensive research and findings, CACH LLC does not have legal proof of debt, they do, however, have a default judgment against us, which means, in the end, we will have to negotiate with this unscrupulous company. And will have to borrow funds to pay. 

Please see attached copy of the Assignment of Sale a document, which we believe was falsified : XXXX XXXX XXXX XXXX, XX/XX/XXXX, was headquartered in Connecticut. 
Cach, LLC., aka XXXX  XXXX  XXXX, was headquartered in Colorado XXXX 
The Affidavit of Sale was notarized in Minnesota. 
The Affidavit of Sale states under the laws of the state of California The Default Judgment was obtained in Arizona The attorney on file, XXXX XXXX XXXX, is licensed in Arizona, not Minnesota Affiant, XXXX XXXX, left Connecticut to fly to Minnesota to sign as Collections Operations Representative of XXXX XXXX XXXX XXXX? 

The time has come to make changes and give consumers weapons to fight back these parasites of the American economy. 

Thank you for taking the time to understand our circumstances and take action to make the secondary debt collection industry illegal. 

Sincerely, /s/ XXXX XXXX /XXXX/ XXXX XXXX