One of our team members and banking law expert – José Ignacio Sánchez – successfully had a judge in Salamanca reject the claim of a “vulture fund” loan. So, if you are being harassed by one of these unethical financial predators, keep reading to find out how our team can help you successfully oppose a claim against them.
A “vulture fund” buys unpaid loans at low prices to the bank and then demand repayments from the defaulter at much higher rates. The “new” creditors start with demands and threats to get the 100% of the value debt.
Many people have been affected by this type of unethical practices. And many, weren’t even aware that there is a way out of this distressing situation.
Keep reading to learn more about these dreadful financial vultures and to find out how our team at Fuster & Associates is knocking them down one by one!
Imagine you owe a debt (loan, credit card or similar product) and that for whatever reason you are unable to make your monthly repayments. Now imagine that your debt has been sold to a fund.
You obviously have no idea of this sale and that the new creditor is classified as a “vulture fund” nor that its intentions are less than honourable.
Your phone rings and is a representative from the fund remind you about your late payment. The reminder soon becomes a threat. And then they are talking legal action. The calls don’t stop.
To the point that we are talking about telephone “harassment”. What do you do?
You – like most borrowers – choose to follow one of two paths:
You try to renegotiate your debt (or a reduction of the debt) with the alleged “new” creditors.
Or you simply burry your head in the sand and stop answering the phone and stop listening to their demands and their threats. This second course of action is not advisable. In fact, it will only aggravate the situation triggering a final legal injunction against you.
In a way, you – the borrower – have become a perpetual prisoner of your creditor. Or have you?
Yes, you can. Your case against a vulture fund can be successfully defended in a court of law as long as you have a legal expert by your side.
The general lack of information on this matter leads people to believe that:
Both assumptions are wrong. With enough preparation time, a lawyer should be able to articulate a successful defence against a vulture creditor.
Most people don’t until things go south. This is what happens generally: you’ve signed up for a loan, a credit card or similar financial product. Then, you stop paying it.
Weirdly enough you don’t receive any information from the bank but after a while you get a call from a law firm claiming the debt. You decide to block that number and not answer your phone.
They look for someone with the same surname until they locate you. And if they don’t they harass the relative they’ve found.
As a last resort, if they can’t get to you – the alleged debtor – they’ll take the matter to court.
And when that happens, they’ll find you for sure, be it through your social security, your payroll, your bank accounts, mobile phone records, etc.
All these companies and institutions have a legal obligation to release your details to the judge. Then they’ll refer the matter to the Small Claims Court and that’s it!
You have 20 days and two only options:
You either pay the debt once and for all or you oppose the claim.
Unfortunately, most people go “Emu” mode and burry your heads in the sand and decide not to resolve the matter. As you can imagine, this course of action results in unmet deadlines and claims becoming executive titles that have neither been opposed nor paid on time.
This situation is very difficult to revert. And this situation is, in fact, terrifying. Because these companies now have a credit in their favour for life or until they recover all the money from you.
They can get an order to have your payroll impounded or your inheritance or any other income you earn throughout your life.
Because of the obscure way in which the debt is purchased, reported and calculated at Fuster & Associates we encourage you to take these vulture funds to court.
The chances of winning and eliminating your debt are very real.
We also encourage you to sue in cases of other products such as “Floor Clauses” or deposits paid on homes that have never been delivered. We work very hard to redress all injustices in this type of matters!
Only recently one of our team members and banking law expert – José Ignacio Sánchez – had successfully had a judge in Salamanca reject the claim of a “vulture fund” loan.
The bank had sold this loan to a “vulture fund” which bought unpaid loans at low prices and then demand repayments from the defaulters at much higher rates.
In this case, the ruling prevented the continuation of the claim because of “the alleged lack of locus standi” and dismissed the alleged claimed 14,531.55 unpaid euros in full. You can read more about this news here.
Information is key, remember.
But if you feel harassed or threatened in any way… Or if you feel your chances of recovering your money are nil, talk to us.
We’ll be as transparent and realistic about your chances of success as possible and guide you through the entire claim process.
If you have any doubts, please feel free to send José Ignacio a message.
We want to help you navigate all the legal complexities that come with your home buying in Spain, but this article is legal information and should not be seen as legal advice.
I would change the headline to “Why you should take a vulture fund to court” – you don’t “claim a vulture fund”, you file a claim against them. But “take them to court” is more attention-grabbing as a headline. You then correctly discuss filing a claim against the vulture fund in the rest of the article.