In June Maryland’s Attorney General’s Office, in coordination with the Department of Labor, Licensing and Regulation recommended some new rules for companies that purchase charged off receivables. This past Wednesday they got their wish as Maryland’s Court of Appeals approved changes to the state’s Rules of Procedure. These changes will make it more difficult for “typical” debt buyers to operate effectively.
Let me explain.
These new rules will make it mandatory that buyers of past due consumer debts provide adequate evidence to support their claims before tying to collect from the consumer. This is important because when debt buyers purchase charged off accounts they pay steeply discounted prices and receive only minimal information regarding the accounts. According to the Maryland’s Attorney General’s Office, “The companies then swear in affidavits that the information is accurate, though they frequently don’t pay to acquire documents.”
At Ropay Asset Investors we are anything but “typical.” We don’t cut corners or engage in deceptive practices just because they are not laws yet. We do what we believe is right.
When we purchase a portfolio of charged off accounts we buy the supporting documentation right along with it to verify the details in the package we just purchased.
This is just one example of how the current collection industry as it stands is severely flawed and in dire need of change. As new laws are passed “typical” debt buyers will continue to fall by the wayside because their tactics that take advantage of the unregulated system will no longer work.
Their loss will be our gain and our investors will continue to reap huge profits.
Do Good and Make Money!