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Posted by Arnold A. Arpino | Jan 30, 2015 | 0 Comments

If so, we are here to help. After the fallout from the financial crisis, the purchasing of past due debt has become big business – and I mean really big business. The Consumer Financial Protection Bureau “CFPB” estimates that third party debt buyers rake in billions each year.  The CFPB also estimates that the average amount paid by a debt buyer when purchasing a portfolio of bad debt is seven to eight cents on the dollar. Below are two important tips when dealing with third party debt buyers or junk debt buyers.

  1. If you are being harassed with phone calls and letters, send the debt buyer – or whoever is contacting you – a “cease and desist letter.”  This is where you tell the collector to cease all further contact with you via phone or mail.  Any further communication after the collector receives that letter is a violation of the Fair Debt Collection Practices Act.  The collector is allowed one more letter thereafter to let you know their intentions.  (For example, if in response to your cease and desist letter they send you a letter stating that they are closing their file – that is not considered a violation).  This should stop the communications.

  2. If you receive a summons and complaint from a Debt Buyer it is very important that you DO NOT IGNORE THE SUMMONS.  That is absolutely crucial.  If you ignore the summons, the debt buyer through their attorney, will apply to the Court for a default judgment and you will automatically lose. 

  You do not need to be afraid of a lawsuit from a junk debt buyer.  A lot of consumers answer the complaint, then become afraid of going into Court and standing before a judge.  Or they are intimidated by the attorney for the junk debt buyer into signing a settlement that they felt forced into. Also, a consumer not represented by an attorney might have to miss valuable time at work.

  We here at Arnold A. Arpino & Associates, P.C. understand that many consumers believe that they are not able to afford an attorney.  However, do not let that stop you from contacting our office for help fighting a junk debt buyer.  Our rates might surprise you, and be much more affordable than you think.  We are also happy to work out a monthly payment plan of our fee, should you not have the ability to pay the entire fee up front.

  Let Arnold A. Arpino & Associates, P.C. take that stress away from you! If you have been contacted or have received a summons from any of the following debt buyers, do not hesitate to contact us today!

Midland Funding  or Midland Credit Management

Asset Acceptance

Portfolio Recovery Associates, LLC

Calvary Portfolio Services, LLC

Unifund Corp

Arrow Financial Services, LLC

About the Author

Arnold A. Arpino

Managing Shareholder focusing on Creditor's Rights, Real Estate, & Non-Taxable Estate Planning.


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Arnold A. Arpino & Associates, P.C., is a full service law firm that represents individuals and businesses in a variety of different practice areas. Our firm regularly appears in the Courts throughout Long Island, New York City, and the Hudson Valley.