Vulture debt buyers are buying up questionable debt (credit card, student loan, auto, you name it) for pennies on the dollar and filing lawsuits in volume, obtaining default judgments in bulk, on junk evidence.  The CFPB is going to step in with some new rules.

Full article in the American Bar Association journal here.

Here are three names to watch out for:

THE BIG 3

The debt-buying industry plays a legitimate role in righting the economy, providing some compensation (pennies on the dollar) to banks and other lenders that discharge unpaid debts and sell them. And it is huge, having become so in less than 15 years.

The biggest firm is Encore Capital Group, based in San Diego; it is the parent of Midland Funding, the company that pursues payment. Encore last year surpassed $1 billion in revenues, a 39 percent increase over 2013, spurred by major acquisitions, among…

This could get interesting. It’s complicated but it looks like the administration is closing in on the so-called REMIC Trusts. I personally doubt if anyone is going to be willing to sign the REMIC Tax Reports. The reason is simple: the REMIC Trusts never operated and never received any investments dollars or any startup funds. They exist only on paper. Writing a trust instrument does not create a trust. It is only when there is property transferred into the Trust that the Trust is created and becomes a legal entity.  The blizzard of paperwork, forged and fabricated assignments, endorsements, backdating, etc. was meant to distract judges from the truth. It worked — up until now.

If the Trustee has some fool robo-sign the Tax reports, it is subjecting the person and the Company (frequently US Bank) to multiple Federal criminal and civil liabilities. If they say the Trust did operate…