Your debt collectors may soon be adding you on Facebook

[Donut417]

3 minutes ago, Trik'Stari said:

Although I don't see how a piece of property can ever be paid off, if you are required to endlessly make payments to another party, else you lose that property, potentially at gun point.

 

Well thats depending on where you live. Not all states here in the US have property tax from my understanding. 

[Trik'Stari]

42 minutes ago, Brooksie359 said:

Unless you plan to buy a house upfront and cars as well debt is inevitable. 

Houses yes, cars no. Cars are, or were, rather affordable before Cash4Clunkers wiped out the used car market.

 

As for houses, that's a very complex issue that can be solved. It involved encouraging generational wealth accumulation and eliminating property tax as a whole.

 

If you are required to pay someone on something you allegedly own, lest that thing be taken from you by force, you do not own that thing. End of discussion.

[Trik'Stari]

1 minute ago, Donut417 said:

Well thats depending on where you live. Not all states here in the US have property tax from my understanding. 

Most do, as I understand it.

 

As far as I am concerned, so long as property tax is considered legal (it should not be), you can never truly own a house, or piece of land. Regardless of your bank statement.

[Brooksie359]

12 minutes ago, Trik'Stari said:

Houses yes, cars no. Cars are, or were, rather affordable before Cash4Clunkers wiped out the used car market.

 

As for houses, that's a very complex issue that can be solved. It involved encouraging generational wealth accumulation and eliminating property tax as a whole.

 

If you are required to pay someone on something you allegedly own, lest that thing be taken from you by force, you do not own that thing. End of discussion.

Yeah at the end of the day thw bank owns your house until you pay off your mortgage. As for cars I would say that it is possible to buy outright but the only problem is that saving up enough to do so when you need a car is a problem. Not having a car isn't really an option for alot of people and trying to save to afford a decent car outright is not ideal when you don"t have the time. The one benefit of a car loan is that they usually have low interest rates and you can pay it off early to save more money. I don't think I will buy new though as the markup to buy new is way to high to be worth it for me. You can get a used car that is basically new in condition but cost significantly less. Most of my friends assumed I bought a new car and were shocked when I told them it was used. The mintue you drive off the lot with a new car the value of the car drop significantly whereas the same can not be said about a used car. 

[Letgomyleghoe]

3 hours ago, Brooksie359 said:

It sucks when the first thing you think about when you are debating on if you should go to the hospital is not whether or not your physical condition is bad enough but whether its worth wasting a couple grand in medical bills. 

or wether you have the couple grand... sometimes half a bottle of whiskey and a friend who know how to stitch work too... or a vetrinarian friend who can make a cast...

[it_dont_work]

More evidence of just how fucked the US debt system is. 

 

You don't need more laws to collect debt, you need some fucking consumer finance protection to limit high risk credit. 

[Donut417]

7 minutes ago, it_dont_work said:

You don't need more laws to collect debt, you need some fucking consumer finance protection to limit high risk credit. 

DING DING DING......

 

When my parents got a mortgage in the 80s, they only got approved for like $50K, because my dad made $50K a year. They were a lot tougher back then. Then they decide to just let any dumb ass buy a $350K house, who cares about their credit. Then 2008 hit and the market went bust. But Wall Street didnt learn. You figure those greedy bastards would have learned back in 1929, but nope. 

 

Not only do they need to get debt under control. But I think they need to reinstate the Glass Steagall act. The banks cant be trusted, so the government needs to step in. 

[it_dont_work]

32 minutes ago, Donut417 said:

They were a lot tougher back then. Then they decide to just let any dumb ass buy a $350K house,

 

This isn't so much the problem as taking into consideration what other unsecured debt someone has before offering to lend. 50k income and a 30yr mortgage on 350k should be fine, it the consumer doesn't possess other high risk debt like credit cards certain car loan types, etc 

 

Given I'm in Australia, and i'll also point out my understanding of the US debt system is not huge. 

 

I spent a good 3 months in the US and bought a car as it was cheaper than renting for the trip, I literally had to explain to the dealer in LA I was going to pay it outright. They asked me to come back the next business day so they could work out how much it actually cost as opposed to a loan repayment. All this while I'm looking at billboards and listening to ads saying "fix your finances by declaring bankruptcy" which is so alien to an aussie 

 

What I see as the heart of the issue, is people seem (like i said not american so opinion here) to just accept the dangerous position of "can I still make the monthly/weekly repayments" instead of "can I afford this". But why limit people's freedom of choice even if it protects them  

 

TLDR: Nothing here just a rant 

[Donut417]

2 minutes ago, it_dont_work said:

But why limit people's freedom of choice even if it protects them  

Its not about limiting freedom. Its about the banks being able to get their money back. Most states in the US have a statute of limitation one how long debt collectors can ask for money. Meaning that once that is up, you can tell them to pound sand. Thats what happen with my sister and Capital One. She owed them money for a credit card or something and it went in to collections. She tried multiple times to try to clear the debt, made a few offers on how much she could afford. They declined. So they got NOTHING. 

 

In some cases they cant really do anything to collect the debt. Now with cars and houses, yeah they can. But keep in mind, you try to boot someone out of a house, they could just tear up the inside. Rip out all the copper and sell it. With a car, that person could sell it to another and the debt collector may never find it. This actually happen to a friend of mine, she got pulled over by the police, and I guess a lien got put on the car. They ended up seizing it. But if she never got pulled over, they might have never found it. 

 

8 minutes ago, it_dont_work said:

fix your finances by declaring bankruptcy"

Thats because it falls off your credit report after like 5 to 10 years. My sister declared bankruptcy, I think with her first husband. (If you haven't seen a theme here, my sister is terrible with money). Now its offer her credit report. But she has even more debt, in the tune of student loans. Thankfully her employer will pay so much towards them each year. 

[Zodiark1593]

4 hours ago, RollinLower said:

i know some debt is probably ineviitable in some scenarios (especially when you don't have universal healthcare) but my point still stands. if you don't want debt collectors stalking you, you should do one of two things:

-don't get into debt

-settle a payment arrangement with the collector.

 

just ignoring the debt won't help. the collector won't just forget about it.

I would really like it to be on the books that debt cannot be legally enforced without either explicit consent (debtor must sign contract to be on the hook, verbal or implied consent does not equate debt) or court order (in the case of lawsuit). 
 

Such a change would probably put universal healthcare to the forefront soon enough. 

[TempestCatto]

6 hours ago, rcmaehl said:

The US Consumer Financial Protection Bureau has ruled that debt collectors may contact users via Social Media and text message.

This is literally only going to be seen as nothing but a scam or spam/phishing. I also see Facebook and other social media companies trying to not let this happen. Dark times we live in; even hell has its own fires to see.

[trag1c]

6 hours ago, Brooksie359 said:

It sucks when the first thing you think about when you are debating on if you should go to the hospital is not whether or not your physical condition is bad enough but whether its worth wasting a couple grand in medical bills. 

In Canada our healthcare is almost to free because everyone with a God damn runny nose goes to the clinic so you end up waiting a fair bit just to see a doctor. I had one time I had to leave work because I had an alternator slip from my hands while the truck was on the hoist and it nailed me on the top of the head giving me a pretty sizeable cut Goose egg and a concussion. Sat in the waiting room for over an hour because it was filled with people who had nothing more than a damn cold while I sit there with blood dripping down my face lol. Granted I am glad I don't have to pay anything but still very annoying that people go to the doctors for something that the doctor can't do anything about.

[Donut417]

3 minutes ago, trag1c said:

n Canada our healthcare is almost to free because everyone with a God damn runny nose goes to the clinic so you end up waiting a fair bit just to see a doctor

Imagine paying for the service and it going the same way. At my primary doctors place I wait for like 45 Min to be seen. I have had 45 min to over a hour waits to get blood work done. Paying for the service doesn't even mean you get faster service. 

[poochyena]

7 hours ago, RollinLower said:

the best solution here would be to just not get into debt.

Tim cook has a company with billions of dollars of debt.
A random homeless man has near $0 in debt.
Who would you rather be? Clearly the person with less debt, right?

[RejZoR]

Laughs in not having/using Facebook at all XD

[SansVarnic]

SMH... I guess this is a non-issue for me since I dont use social media but then I try to stay away from debt.

Also this now opens another venue for scammers, I am sorry that this is happening for the rest of you that do use it.

[Guest]

Funny they want to go after people with a few thousand dollars in debt....

 

How about, Go after the State of Illinois for their trillions of dollars in debt. This state can't even begin to start to set a good example when it comes to a budget. 

 

In order to have good credit.... you need to accumulate and pay off the credit debt. 

Oxymorons. Gotta love it.

[Brooksie359]

2 hours ago, trag1c said:

In Canada our healthcare is almost to free because everyone with a God damn runny nose goes to the clinic so you end up waiting a fair bit just to see a doctor. I had one time I had to leave work because I had an alternator slip from my hands while the truck was on the hoist and it nailed me on the top of the head giving me a pretty sizeable cut Goose egg and a concussion. Sat in the waiting room for over an hour because it was filled with people who had nothing more than a damn cold while I sit there with blood dripping down my face lol. Granted I am glad I don't have to pay anything but still very annoying that people go to the doctors for something that the doctor can't do anything about.

Not gonna lie the ER is often times not much better because people still do that in the US because they can't be denied to be seen. My brother broke is leg horribly and waited in the ER for over an hour just to get a room. Ended up needing a couple of screws and some serious surgery in the end and that was very expensive. The worst part is that out of all the times I have been to the ER they almost always put me in a room and I have to wait an hour for the doctor to actually see me. Also I would probably still wait a bit longer if I could not have to pay over a thousand dollars every time I have to go to the ER. 

[Mark Kaine]

10 hours ago, Brooksie359 said:

Unless you plan to buy a house upfront and cars as well debt is inevitable. 

You could also - crazy idea I know - rent something and use the underground or bike (you know like billions of other people too) 

[paddy-stone]

Unfortunately it's very easy to get into debt, and for many people it's hard to get out of. I'm not on about frivolous debt, I mean people that literally go into debt to buy clothes and food for their children etc. Some of these companies are basically legal loan sharks, interest as high as 2000 + APR%  it's disgusting. 

I would never get in debt again, but did have problems in my 20s after I was made redundant. I got it sorted out, but it was still worrying at the time until I got another job.

 

I've also had calls from a debt collection agency asking for someone that doesn't live here, and has never lived here... They were very insistent. In the end I told them I would report them if they carried on calling here. I found out who they were by reverse lookup.

[ewitte]

I'm going to assume the same cease and desist laws apply.  FYI debt collection agencies are 3rd party you have 0 obligation to them.  Your contract is with the originating company regardless of whether they sell it off or not.

[ewitte]

15 hours ago, RollinLower said:

the best solution here would be to just not get into debt.

The US its very easy to get hurt and end up with someone wanting $100k+ from you...

Being said most people don't know their rights.  There are federal cases that have determined "fair value" for services if you don't have insurance they may be charging 1000% on top of what is considered "fair value".  I had 2 instances where they refused to negotiate and I made it go away once they sold it off to a debt collector.  Also a few times I was forced onto the toll road (I avoid these) and got a bill in the mail.  I refuse to pay a toll for roads likely built buy taxes and sold off to a Chinese company.

 

EDIT: There are medical billing codes and a database to lookup what fair value is.  Also if your in the hospital.  They tend to farm out 3rd party companies that aren't listed on your insurance to make a higher profit...  The hospital and medical system in the US is corrupt as you can get.

[NeuesTestament]

I might finally get some friends on Facebook then

 

Seriously though, I don't see this as a big issue. Considering they can also show up at your door.

[Monkey Dust]

11 hours ago, Donut417 said:

DING DING DING......

 

When my parents got a mortgage in the 80s, they only got approved for like $50K, because my dad made $50K a year. They were a lot tougher back then. Then they decide to just let any dumb ass buy a $350K house, who cares about their credit. Then 2008 hit and the market went bust. But Wall Street didnt learn. You figure those greedy bastards would have learned back in 1929, but nope. 

 

Not only do they need to get debt under control. But I think they need to reinstate the Glass Steagall act. The banks cant be trusted, so the government needs to step in. 

It's why houses have massively increased in value across the western world. Higher salary multiples on mortgages have increased, increasing buying power leading to higher selling prices. We're taking on more debt than previous generation did, to buy what are often smaller houses.

 

But if you can't buy a house you're still paying rent past retirement. This may well be impossible as the rising cost of buying a house has brought the cost of renting one up with it, outpacing wage growth.  

 

Never taking debt is a nice idea, but unless you're born into a very rich family, or happy to live your whole life as a hobo, not practical. And it can be very easy to get into trouble with it. If you lose your job and can't get another one quickly that can cover your expenses, things can head south fast.

[wanderingfool2]

1 hour ago, Monkey Dust said:

It's why houses have massively increased in value across the western world. Higher salary multiples on mortgages have increased, increasing buying power leading to higher selling prices. We're taking on more debt than previous generation did, to buy what are often smaller houses.

 

But if you can't buy a house you're still paying rent past retirement. This may well be impossible as the rising cost of buying a house has brought the cost of renting one up with it, outpacing wage growth.  

 

Never taking debt is a nice idea, but unless you're born into a very rich family, or happy to live your whole life as a hobo, not practical. And it can be very easy to get into trouble with it. If you lose your job and can't get another one quickly that can cover your expenses, things can head south fast.

I only half agree.  There are plenty of people who I know that are in debt and owe a lot of money, whom I have no sympathy for because they brought on their situation.  I think one problem that is occurring is that talk regarding entitlement and overspending. e.g. A group of people complaining in front of me they can't afford things and are in debt...only thing being they make twice what I earned through commisions (I had a healthy set of savings) and one of them had $300 phone bills (because he "need the data plan"...he did not).  There are plenty of people today who take vacations and spend their entire paycheck and go into debt and blame it on other circumstances.

 

With that said, yes it is a huge burden with the pricing of housing the way it is today (although I know places that I could afford that are still close to the popular houses that go for less than 10 years of salary after living expenses)

 

On topic, I don't really see to much issue with collectors using facebook...honestly, as long as they stick to the same laws lets say a stalker would have to stick to to not get in trouble I think it would be fair.