On the heels of robo signing and other consumer financial scandals, Bank of America recently sold the rights to collect defaulted credit card debts to a junk debt buyer, CACH LLC of Denver Colorado. Many of these credit card debts were sold for as little as 1.8 cents on the dollar. It was learned that in the sales documents allegedly transferring the rights to collect, Bank of America specifically disclaimed any representation that the credit card debts were valid. Bank of America also warned CACH LLC that the documents proving the credit card debts might be unavailable, and, worse still, Bank of America told CACH LLC that the credit card debts could be invalid due to bankruptcy or repayment. These numerous defects in proof of debt were reflected in the low price Bank of America charged CACH LLC to acquire the junk debts. According to insider accounts, the selling of junk debts to junk debt buyers is industry practice.
CACH LLC is a debt collection agency because it acquires junk debts that are in default with the intent of collection. Rather than collect in-house, however, CACH LLC usually hires various law firms across the country to collect the junk debts from debtors. It hires the law firms to sue debtors and make various representations to the courts in which the collection lawsuits are filed. Here’s the problem: A law firm is required to reasonably verify the claims of his or her client before making claims in court. How can law firms on behalf of CACH LLC represent to courts the validity of the Bank of America credit card debts when Bank of America itself told CACH LLC that some of the credit card debts were invalid, lacking evidentiary support, already paid, or protected in bankruptcy? They can’t. But, they still do it all the time.
CACH LLC and its Law Firms Hope You Default
If CACH LLC has allegedly purchased the rights to one of your credit card debts, it may attempt to collect from you using traditional methods such as collection letters or telephone calls. If you fail to respond or do not comply with its imposed repayment terms, it will sue you in court to collect. CACH LLC hires law firms to sue with the hope that you will fail to respond (file an answer) to the summons and complaint. There is a hard-to-understand phenomenon in the consumer financial world, and that phenomenon is the en masse failure of consumers to respond to debt collection lawsuits. In some studies, the failure to respond to debt collection lawsuits is as high as 95%. But, both CACH LLC and its law firms gleefully capitalize on this phenomenon to their benefit.
A consumer’s failure to respond to the summons and the complaint regarding the junk debt means that CACH does not have to prove its claim. In these many, many instances, neither the consumer nor the court ever learn that the valid basis for the junk debt was already disclaimed by Bank of America. It never comes to light in court that Bank of America and CACH LLC could not have proved the junk debt. By not responding to the debt collection lawsuit, you’re left with a judgment against you on a debt that could not have been proven.
If you were to challenge the collection suit, on the other hand, Bank of America might have to be involved to support the origination of the claim. This means that if your original debt defaulted, Bank of America must supply proof of your credit card contract. Obviously, this is a problem for CACH LLC because the documentation may have been lost and Bank of America does not want to contend with a debt it already sold and is done with.
For the few consumers who do respond to a summons and complaint or otherwise defend themselves, CACH LLC was discovered to use bogus affidavits from far-away “witnesses” who claim to be employed by Bank of America. These bogus affidavits “testify” to the validity of all Bank of America records, despite the fact that Bank of America’s sales contract with CACH LLC suggests otherwise. Additionally, CACH LLC is accused of altering the sales contract with Bank of America by removing problematic contract language disclaiming the accuracy of the junk debts. So, when the sales contracts are rarely produced in a court process, those documents are allegedly altered to remove references to problematic language.
This is worse than robo signing. In robo signing, a person will sign hundreds if not thousands of affidavits of indebtedness for use in court without regard to that person’s actual knowledge that a debt may exist. In this instance, CACH LLC is accused of actually altering records to support its claims against consumers. There is a difference: It’s one thing to just blindly sign (robo sign) a document; it’s quite another to alter (counterfeit) it.
How Can my Debt Defense Attorney Help Me with CACH LLC Junk Debts?
If you are being pressured by CACH LLC to repay an alleged Bank of America credit card debt, you should contact a consumer rights attorney right away. Not only could your consumer rights attorney explore the inability of CACH LLC to prove the junk debt, there may be other defenses you are not aware. A junk credit card debt will have a complex statute of limitations apply that may exonerate you from having to repay regardless of CACH LLC’s “proof.” Also, if you have discharged the debt CACH LLC allegedly bought from Bank of America, it is actually illegal for CACH LLC to knowingly attempt to collect that debt. In other instances, CACH LLC may not be even able to prove it now owns the debt because Bank of America may not cooperate.
Ultimately, if CACH LLC or its law firms cannot prove the validity of a junk debt, would only a fool repay it? Consumer debt is a two-way street. If Bank of America chooses to engage in a system that undermines itself with robo signing and/or false signing, why should anyone benefit from a system based on deceit? Why should CACH LLC benefit? To repay your alleged debt voluntarily to CACH LLC only perpetuates the consumer injustice.
Your debt defense attorney can respond directly to CACH LLC or its law firms in a controlled manner. Your debt defense attorney can also challenge any debt collection lawsuit brought against you by determining the validity of the alleged claim and fashioning a winning defense.