Debt collector is chasing me...

[Chasero]

Come on guys, the debt collector gets the loan for a cut rate, the bank has already written it off and on sold it.

There is great advice on this thread but leaving uni to get a job to pay off a debt is not good advice. As many have said, try and come to an arrangement. They would prefer part of the money now rather than long term so maybe you can strike a deal and pay off your Dad over time.

Don't worry about "the taxpayer". Your tiny amount will hardly effect the amount of tax payed by the debt collector.

It's not leaving uni, it's postponing uni. Nothing wrong if he can get a job in his field before finishing uni, you can always come back to it.

Better yet, work part time and study full time, as others suggested.

 

[Calliope]

Don't worry about "the taxpayer". Your tiny amount will hardly effect the amount of tax payed by the debt collector.

I am a taxpayer. ausnick said he was living off centrelink benefits. He is 24/25 years old and has obviously been living off taxpayer funding for many years. Getting a job would benefit the taxpayer and also ausnick's self-esteem.

 

[Junior]

I am a taxpayer. ausnick said he was living off centrelink benefits. He is 24/25 years old and has obviously been living off taxpayer funding for many years. Getting a job would benefit the taxpayer and also ausnick's self-esteem.

Yeah fair points. But why should he pay off the whole debt if he doesn't have to?? He could well pay it off in full and still have a crappy credit rating.

Look after number 1 in these situations. Screw ANZ and Baycorp, these organisations have no compassion and should be dealt with on a professional basis, not an emotional or moral one. Tech/a has provided solid suggestions here.

If he finishes his studies and pursues a career then he'll pay plenty of tax, Austudy is there to provide support for full time students so why not utilise it.

 

[SevenFX]

That's the last thing the OP should be doing IMO. Never involve friends in either borrowing or lending.

I was about state the same thing, but Julia has put it very well.

There is no harm in harsh negotiations. They need money our of you, so try to control the situation.

Also IMO there is harm in harsh negotiations, as the person you are dealing with can be rubbed up the wrong way OR compasionate to your situation and act favourably for the best outcome.

SevenFX

 

[Julia]

It is strange that inq is the only one to suggest that you get a job and pay your debts

I don't think that's quite true, Calliope. Several of us have said the OP should come to some arrangement about paying off the debt over time.

I am a taxpayer. ausnick said he was living off centrelink benefits. He is 24/25 years old and has obviously been living off taxpayer funding for many years. Getting a job would benefit the taxpayer and also ausnick's self-esteem.

Agree.

 

[Julia]

Yeah fair points. But why should he pay off the whole debt if
he doesn't have to??

Because he incurred the debt and it's his responsibility. What a great society we'd have if we all engaged in the sort of philosophy you're espousing.

Also IMO there is harm in harsh negotiations, as the person you are dealing with can be rubbed up the wrong way OR compasionate to your situation and act favourably for best outcome.
SevenFX

Agree. I'm blown away by the OP suggesting he should "threaten" anyone with anything.

 

[Junior]

Because he incurred the debt and it's his responsibility. What a great society we'd have if we all engaged in the sort of philosophy you're espousing.


Agree. I'm blown away by the OP suggesting he should "threaten" anyone with anything.

Julia, I would never suggest taking out a loan unless the intention is to fully repay the debt. However the fact is he has made some mistakes and finds himself in the situation where the debt has been written off and sold to a debt collector, and no doubt he he has damaged his credit rating in the process.

I believe the best thing to do now is rationally work out the best way to rid oneself of this debt.... whether that means fully or partially repaying what is outstanding.

Owing a friend or individual money is very different to owing a large financial institution money IMO, and thus the decision as to whether or not to repay in full should take this into account. If the debt isn't fully repaid there won't be any person or family harmed by this decision....it's business.

 

[Junior]

Additionally to the above, we're in a society where the banks will lend to individuals who shouldn't be lent to, for the banks' short term profit. When they approved Ausnick's credit limit of $6,000 they would have done so knowing there was x% chance the debt would not be repaid, and this risk of the debt turning bad is factored in when determining the interest rates, fees and charges etc.

So I reiterate, the mistakes have been made, credit rating has been harmed, repay whichever amount is in your best interest to repay.

ANZ has already written it off and sold to Baycorp, they don't give a sh*t how much you repay. Baycorp have purchased the debt for a fraction of it's total value. Blindly repaying the whole amount isn't 'moral' in this situation, it's just not necessarily the smartest course of action.

 

[Bonk]

Why not go to the ANZ , and tell them the story why the debt happened . They most likely will sympathise with you and give a new loan to payout the debt . Good for banking and good for you......simple win win ~! The Euro-zone is the example to follow . Kick the can down the road ....

 

[Calliope]

Why not go to the ANZ , and tell them the story why the debt happened . They most likely will sympathise with you and give a new loan to payout the debt . Good for banking and good for you......simple win win ~! The Euro-zone is the example to follow . Kick the can down the road ....

It is fashionable now to max your credit card without any hope of repaying. It is also fashionable to deny that we are responsible for the consequences of our actions. Junior gives the two-finger salute to responsibility.

As Mark Steyn points out America leads the world on irresponsibility

At the end of 2011, America, like much of the rest of the Western world, has dug deeper into a cocoon of denial. Tens of millions of Americans remain unaware that this nation is broke - broker than any nation has ever been. A few days before Christmas, we sailed across the psychological Rubicon and joined the club of nations whose government debt now exceeds their total GDP. It barely raised a murmur - and those who took the trouble to address the issue noted complacently that our 100 per cent debt-to-GDP ratio is a mere two-thirds of Greece's.

http://www.theaustralian.com.au/new...-ring-in-the-new/story-e6frg6zo-1226234378092

 

[OzWaveGuy]

It's interesting to see the responses in this thread - almost none of them are near the mark. At the end of the day it's your decision on how to handle the alledged debt.

Two brief questions:
1. Do you have a contract with the debt collector? If not, then how can they say you owe them anything?
2. Are you sure you have a debt in the first place (as many in this thread assert)

Always remain in honor, by dishonor, you will be in default and liable. For example, ask the debt collector for the written contract with your wet ink signature to prove the debt.

There are plenty of ways to handle this type of situation - ultimately it's up to you.

 

[Macquack]

Two babies at the new reduced rate of $5000 per kid will pay off the debt and you will still have enough left over to buy a big LCD television.

 

[prawn_86]

It's interesting to see the responses in this thread - almost none of them are near the mark. At the end of the day it's your decision on how to handle the alledged debt.

Two brief questions:
1. Do you have a contract with the debt collector? If not, then how can they say you owe them anything?
2. Are you sure you have a debt in the first place (as many in this thread assert)

Always remain in honor, by dishonor, you will be in default and liable. For example, ask the debt collector for the written contract with your wet ink signature to prove the debt.

There are plenty of ways to handle this type of situation - ultimately it's up to you.

OWG,

I read your posts with interest/bemusement. You talk some interesting legal theories yet you have never once gone into further detail or provided evidence that a case like this would actually win. If the OP did take it to court on the basis that he has no actual debt with Baycorp, why would the judge find in his favour? And how is he to stop his credit rating from being further effected?

 

[Eager]

The OP virtually stole $6k from the bank, then did a runner overseas.

I have a different suggestion. Maybe the debt should be repaid from his prison wages.

 

[Calliope]

The OP virtually stole $6k from the bank, then did a runner overseas.

I have a different suggestion. Maybe the debt should be repaid from his prison wages.

I agree. Maxing your credit card with no capability or intention of paying it off should be a criminal offence.

 

[prawn_86]

I agree. Maxing your credit card with no capability or intention of paying it off should be a criminal offence.

Should it also be a criminal offense to loan to people with no ability to pay it off?

 

[sptrawler]

Here is what happened to us(familly).
Son drove through a stop sign, it was hidden in an overgrown tree, the one in the centre of the road had already been flatened by a previous accident(huge accident intersection, has been completely reconfigured since).
He drove straight through, thinking it was a thorough fare a car on his left Tboned him.
To cut a long story short, the pile of crap that Tboned him was insured for agreed sum$14,000. Actual worth about $3,000 my son agreed to make payments( apprentice) after about two years he was offered a payout figure, much less than remaining, by the collection agency(he thought he was paying the insurance company). I personaly have not found honesty pays, it usually ends up being used against you and seems to be a misplaced proverb, that ends you in a lot of sh!#. Unfortunately.

 

[Julia]

Owing a friend or individual money is very different to owing a large financial institution money IMO,

Why? If you knowingly take on a debt it should be on the understanding that you will do the honourable thing and repay it as expected.
Imo it makes absolutely no difference whether the contract is with an individual or an institution.

and thus the decision as to whether or not to repay in full should take this into account. If the debt isn't fully repaid there won't be any person or family harmed by this decision....it's business.

It is not "business". It's behaving amorally.
If a society has no honour amongst its individuals and amongst individuals with institutions, we're on a sorry path to ignominy imo.

Two babies at the new reduced rate of $5000 per kid will pay off the debt and you will still have enough left over to buy a big LCD television.

Truly funny, Macquack.

 

[Julia]

Additionally to the above, we're in a society where the banks will lend to individuals who shouldn't be lent to, for the banks' short term profit.

This is an absolutely valid point, Junior. It still, however, leaves the essential responsibility with the person who takes up the loan imo.
But yes, financial institutions needs to be far more discerning in their lending criteria.
(The Storm Financial thread is an extreme example of this.)

 

[OzWaveGuy]

OWG,

I read your posts with interest/bemusement. You talk some interesting legal theories yet you have never once gone into further detail or provided evidence that a case like this would actually win. If the OP did take it to court on the basis that he has no actual debt with Baycorp, why would the judge find in his favour? And how is he to stop his credit rating from being further effected?

Prawn, do you believe we shouldn't be asking questions? Do you assert that it would be wrong to ask for verified evidence of the actual debt?

Evidence - what specifically are you looking for? That debt collectors do write off debts? Dyor - there's so much information on the Internet esp around handling debt collectors the only thing to fear is fear itself.

The bank never loaned any money in the first place.