Debt

Dealing with Zombie Debt

Megan McArdle, illuminating a very real issue:

Very old debts are very difficult to collect, because they disappear from credit reports after seven years, and after a state’s statute of limitation on debt collections expires, the collector can’t even sue. So these wily collectors either hope that the debtor feels bad about being a deadbeat and wants to clear his good name . . . or that he doesn’t know the law. And when hope fails, collectors frequently resort to less savory tactics such as threatening to sue (legal), threatening to have you arrested (it may be legal to make the threat, but they can’t actually make good on it) or impersonating a law enforcement officer who is going to come arrest you (very, very, very illegal).

I had this happen to me about seven years ago: some clown with a very suspicious accent demanding that I pay a debt they claimed I owed the phone company at my last apartment in Pennsylvania. I knew it was preposterous, because when I moved from Pennsylvania I made a determined effort to clear all debts that I had compiled, and even put a note in my Quicken of the “last phone bill” I paid. These fools cared not one wit: They had bought debt that had my name attached to it, they didn’t know any more about it than that, and they were going to call me and harass me over the phone until I gave in.

They did not know who they were dealing with. I told them to go ahead and sue me countless times. They called back. I dealt with them politely. They called back. I told them to perform acts physically impossible and morally heinous. They called back. What they refused to do was provide one solitary piece of evidence that I owed anybody anything.

Finally, I contacted my local Federal Trade Commission office. The gentleman there pointed me in the direction of a piece of legal boiler plate demanding validation of the debt and cessation of contact until debt was validated. I sent it via certified mail so they could not deny they had received it. The next time they called I told them I had sent that letter and would not say anything further on the phone.

A few days later I received a note from them claiming they had passed the imaginary debt on to some other set of sharpies who never contacted me.

Don’t let the bastards bully you.

Captain White Just Rearranged the Hell Out of Those Deck Chairs.

Which is to say, “There are too many metaphors here applicable to the Senate’s 89-8 passage of a “fiscal cliff” bill in the middle of the night (around 2 a.m. this morning).”

Read the Whole Thing, because it’s kind of bracing to realize just how well and truly screwed we are.

titanic_3

“But hey, free birth control!”

Via Other McCain.

The Debt Can’t Go On Forever…

and according to Walter Russel Mead, even Democrats are eventually going to have to embrace this reality:

Republicans and anti-blue statists will want to fix this because bad government is big government and takes a terrible toll on the economy (cumbersome procedures, bad decisions, a large and expensive staff). But smart proponents of a strong federal government will also want to change this status quo because the state as presently constituted is simply not able to take on all the missions they would like to see addressed.

That’s all well and good, but Andrew Cuomo aside, I don’t see the Democrats acknowledging this reality yet. And it’s going to be harder for them to do so, because so many of their key donor groups are dependent upon the old system. For every Cuomo, there’s two Martin O’Malleys who are doubling down on stupid.

The real question is, can we create a “post-blue model” before we become Detroit?