Bohemia, NY (PRWEB) October 15, 2012
On October 15, collection agency Rapid Recovery Solution responds to an article published by California Watch regarding a Canadian bank threatening home foreclosure for credit card debtors.
According to the article, hundreds of California residents with credit card debt are being threatened with foreclosure by Credigy Receivables, a unit of the National Bank of Canada. [California Watch reports that “California law generally makes foreclosure available only to lenders using residential properties as security, and collectors of unsecured debts, like credit card loans, normally are limited to attaching wages or bank accounts.” However, according to the article Credigy Receivables “has taken advantage of California’s relatively lax debt collection laws.” The article reveals that the Canadian bank has “bypassed a legal hurdle” that would stop credit card companies from threatening debtors with home foreclosure.
This collection tactic has generated criticism from consumer advocates who claim that Credigy Receivables is attempting to intimidate debtors into paying, the article reports. The article states that Credigy’s collection methods begin by purchasing judgment liens from California lawsuits that have been filed by unsecured creditors and credit card lenders. After, the article explains that Credigy Receivables uses the names of homeowner debtors as defendants in foreclosure lawsuits. John Monderine, CEO for the collection agency Rapid Recovery Solution, advices, “Right now, it is very risky to be purchasing debt like this. There are some many potential pitfalls. I wouldn't touch it.”
The [article reveals that debt collection is a huge business in the state of California and states that according to the Department of Consumer Affairs, “Firms that are engaged by creditors to collect overdue or defaulted consumer loans have more than 10,000 employees in the state.” Despite the criticism, the article also reveals that some legal experts believe there is nothing strange about Credigy’s foreclosure threats. “Credigy’s tactics illustrate how consumers and collectors often face confusing and uneven legal terrain in California,” California Watch reports.
Founded in 2006, RRS Collection Agency is stationed at the highest point of beautiful Long Island. Rapid Recoverys Collection Company is committed to recovering your funds. We believe that every debtor has the ability to pay if motivated correctly. We DO NOT alienate the debtors; we attempt to align with them and offer a number of ways to resolve not only your debt but also all their debts.