Search the Community

I have always worried about Identity thieves who had account info for Credit Cards from later failed banks attempting collections or selling "accounts" in the secondary collections markets. Has there ever been instances where this has happened? I am looking into it because with the unregulated mess debt collections are now that this possibly could happen. Scenario #1 Identity theft ring waits and has information of accounts. The bank which the accounts are from has failed. The Id Theft ring forms a collections LLC. They file lawsuits on the accounts they have already. The get answers in 1 of 100 cases they conduct discovery and get even more info and proceed to open accounts in defendants names. at trial they dismiss. Scenario #2 Id theft ring sells account data through an account trading portal such as C********XX as a hypothetical. Then the id theft ring dissolves the LLC. and slinks away Scenario #3 Id theft ring sells the info directly to JDB1, JDB1 groups the accounts in a portfolio of accounts for sale to JDB2, because the JDB1 has bills of sale minus the account numbers it all gets washed because the JDB's have id theft insurance, and OC's destroy records after they sell the accounts there is no way for a defendant to find out. That is what I am worried about. It may have happened to some of us already. How do we fight that. Most banks when they have fraudulent accounts just write it off Maybe because the deductible is high? and then the Id theft rings have the data for the account maybe just the 5 data cells for a spreadsheet.