Quote from: DeathAndTaxes on April 11, 2012, 09:00:50 PM

Quote from: Kaos on April 11, 2012, 08:50:40 PM

Quote from: casascius on April 11, 2012, 08:45:55 PM

The first thing you may want to do before getting in the debt collection business, debt collection 101 let's call it, is learn the correct spelling of the word debt.

noted!

In regards to the legality of it, I think this is open to interpretation. Not paying a peer loan is still considered theft. Also, in the spirit of System D and bitcoin creating a government-free, independent database again seems like the right way and nothing more than a more elaborate OTC implementation.

Again, I'm open to discussion... This is just an idea and a proposal...

One thing you may wish to be careful about is that (and I can't speak for other countries) is that violating debt collection laws in the US opens YOURSELF up to significant damages even if the debt is legit.

We are talking in the range of $1000 per violation. Those damages are punitive so the debtor doesn't have to suffer any actual damages (in legal sense) to win.

http://www.ftc.gov/bcp/edu/pubs/consumer/credit/cre18.shtm

You will want to become very aware of the FDCPA. There are debtors in the US who use the FDCPA and sloppy debt collection practices by some companies to rack up hundreds of violations and then sue debt collection agencies for six figures.

"Not paying a peer loan is still considered theft."
This is one example. That would be a violation of the FDCPA. Not paying a debt isn't theft under US law. Stating that is a material misrepresentation of the debt. If I was one of your debtors that single false statement could cost you up to $1,000 in punitive damages. Most debtors in the US are woefully unaware of the rights but the law gives significant protection to them.

Very good information, thanks.

Kaos

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