Zombie Debt: Help stop the haunting!

Marcy Bowers is Director of the Statewide Poverty Action Network.

After building on Poverty Action’s successes passing landmark consumer protection bills, we are mobilizing our network to support HB 1069, which will help regulate an alarming new predatory industry called “Zombie Debt.”

Here’s a quick look at what we’re fighting against:
The Zombie Debt industry is largely unregulated and profits off deceptive practices that intimidate people into paying on old debt or “debt” that they might not even owe. Like a zombie coming back from the dead, old debt comes back to haunt consumers. We urgently need your help to pass this bill which regulates Zombie Debt and the predatory practices of debt buyers.

Check out this video to see how you can help stop Zombie Debt:

TAKE ACTION!

More on the ghoulishness of Zombie Debt:
Zombie Debt occurs when companies sell their old debts for pennies on the dollar to third-party debt buyers. Debt buyers then try to collect on old debts or debts that have already been paid (and sometimes never even owed in the first place). Many times, the information is out of date, has already been paid in full, or is assigned to the wrong person entirely.

Everyone is at risk to be targeted by debt buyers’ search for profit by using the courts and financial system against the public. Debt buying is one of the nation’s fastest growing industries. It is largely financed by Wall Street and is exploiting the lack of industry regulation to extract billions of dollars from people all over the US.

Debt buyers are flooding our court systems:
Debt buyers are increasingly taking advantage of state courts by filing lawsuits to collect on the debt they purchase. Unfortunately, these predatory debt buyers are exploiting our courts by using default judgments against Washingtonians when they might not even owe the debt. Debt buyers don’t even know if they have the right person, the right amount, or any real evidence, but they are able to obtain judgments due to antiquated state laws that don’t protect people from deceptive financial industries.

Low- and moderate-income consumers are disproportionately affected:
One study found that 95% of people with default judgments entered against them lived in low- and moderate-income communities. At a time when struggling families need every penny to survive, Zombie Debt is threatening Washingtonians’ well-being and economic security.

TAKE ACTION: WE NEED YOU!

  • Send your legislators this message: “Washington needs to regulate debt buyers and protect consumers from unfair debt practices. SUPPORT HB 1069.”
  • Have experience with debt buyers attempting to collect on debt you don’t owe or never incurred? Have you paid high fees to a debt settlement company only to end up in a worse situation than when you started? Give us a call to share your story! Call 1.866.789.7726 or email danielle@povertyaction.org.
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Poverty Action at the Capitol

Poverty Action members march & rally in Olympia in 2012

Poverty Action members march & rally in Olympia in 2012

Join the Statewide Poverty Action Network in Olympia on Martin Luther King, Jr. Day, Monday, January 21. Speak out about the importance of basic needs services, fair housing, racial equality, healthcare and other issues impacting the lives of people across Washington State.

Poverty Action’s annual lobby day brings together hundreds of people from across Washington State. It supports issues brought forward by people from across our state through face-to-face meetings with lawmakers, direct actions, and trainings to take our movement back to our hometowns.

This is a great opportunity for both seasoned activists and people who have never expressed their opinions to our lawmakers. Students are especially encouraged to join us and bring the perspective and power of the next generation to the state political process!

WHAT: 
Poverty Action Day at the Capitol – A day of community building, advocacy trainings and exercising political power!

The Washington State Capitol, where YOU have the power!

The Washington State Capitol, where YOU have the power!

WHEN:
Monday, 1/21/13,
9:30am – 3:30pm (bus leaves Seattle 7:30am, returns about 5pm)

WHERE: 
Temple Beth Hatfiloh
201 8th Avenue SE
Olympia, WA 98501

HOW: 
Register online or call 206.694.6794
(toll-free at 1.866.789.7726).

Poverty Action has planned a morning of issue and advocacy briefings in preparation for the 1pm rally at the Capitol and group meetings with lawmakers.

This session, Poverty Action will focus on:

  • Saving safety net programs by protecting them from budget cuts.
  • Fortifying recent changes in payday lending laws that protect consumers, but are under fire from the industry.
  • Tightening up consumer protections against debt collectors and Zombie Debt.

There is free transportation from Seattle to Poverty Action Day at the Capitol (the bus leaves Solid Ground, 1501 N 45th Street in Wallingford, at 7:30am). Breakfast and lunch are provided. Childcare and interpretation services are available upon request.

You can register online or call 206.694.6794 (toll-free at 1.866.789.7726). And for more information, visit the Poverty Action website.

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