CACH, LLC is a debt buyer. Like many other debt buyers, CACH likes to keep things quiet.
This makes sense, because if knowledge of CACH LLC’s tactics became widespread, the company would not last long.
Unfortunately for CACH, its parent company, “Square Two Financial” has to file an annual report with the Securities Exchange Commission. Some interesting facts are disclosed in that report. (Anybody who cares to download the annual report can do so right here: 20140314_SquareTwo_10K_).
Here’s where things get interesting, especially if you’ve recently been sued by CACH, LLC:
Among the disclosures, are “risk factors” that CACH, LLC has identified. CACH, LLC has identified YOU as a risk, even though you were sued by CACH, LLC, and not the other way around.
Yep, CACH is scared of YOU.
Specifically, CACH is worried that you will not be foolish enough to pay up when they give you a collection call.
They are afraid that you will not hand them an easy win in their lawsuit.
In fact, they are so worried about this as a trend that they had to disclose it in a government filing (their annual report called a 10-K).
CACH tries to “spin” their fears to blame everyone but themselves, but I think you will see through it. Here are some of the risks they’ve identified (in their own biased words):
• Websites exist where consumers list their concerns about the activities of debt collectors and seek guidance from other website posers on how to handle the situation. These websites are increasingly providing consumers with legal forms and other strategies to protest collection efforts and to try to avoid their obligations. To the extent that these forms and strategies are based upon erroneous legal information, the cost of collections is unnecessarily increased”
(10-K at p.23)
And check out this one for being rich with irony:
•We operate in a litigious climate and currently are, and may in the future be, named as defendants in litigation, including individual and class actions under consumer credit, collections, and other laws.
(10-K at p.23).
And boy, do they not want anybody in the media to tell you what jerks debt buyers are, as highlighted by the risk factor that might be paraphrased as “the truth might get out”:
•Print and television media, from time to time, may publish stories about the debt collection or accounts receivable management industry that may cite specific examples of real or perceived abusive collection practices. These stories are also published on websites, which can lead to the rapid dissemination of the story increasing the exposure to negative publicity about us or the industry.
(10-K at p.23).
But here are my favorite two:
•A significant portion of our collections relies upon our success in individual lawsuits, which are inherently unpredictable, brought against consumers and our ability to collect on judgments in our favor.
•Our inability to provide sufficient evidence on accounts that are subject to legal collections may negatively impact the liquidation rate on these accounts
So there you have it! CACH is sweating its pants off afraid that you will hold them to the law because they cannot meet the legal requirements to prove their case against you.
If you look up the full text in the 10-K, you see that they try to frame their fears in terms of unreasonable legal demands that have been put upon them by unsympathetic regulators.
The game would be over for them, if only consumers would stand up for their rights en masse and defend themselves properly.
Speaking of which…