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Bad Paper: Chasing Debt from Wall Street to the Underworld Hardcover – October 14, 2014
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An Amazon Best Book of the Month, October 2014: Everyone knows about collections agencies, but how they actually operate is much more interesting than you probably think. Falling somewhere between Glengarry Glen Ross and Mean Streets, Jake Halpern's Bad Paper introduces us to an economy spanning many shades of gray. Halpern's book tracks the descent of "paper" (spreadsheets containing the information of millions of debtors and their debts) as it's sold for pennies on the dollar by banks and credit companies and passed through a network of collectors. Files are often bought and sold multiple times, each transaction stripping away the best remaining prospects as collectors wring paper dry through all manners of persuasion and coercion. Along the way, Halpern encounters first-hand the game's players, from the financiers at the top of the pyramid to mid-level "brokers" and the ground-level phone-jockeys; these are all hard men within their contexts, as one tale of a Tarantino-grade stand-off over stolen information attests. This book is unexpected, and unexpectedly fun. --Jon Foro
“Bad Paper gives readers an intimate knowledge of the debt-collecting industry, but more important, it gives a comprehensive profile of the people in our country who live and die by the industry. This, ultimately, is the book's power and attraction.” ―Frank Tempone, Chicago Tribune
“[A] wonderful inquiry into the seamy, multilayered world of consumer debt collection . . . both an entertaining sociology of the debt-collecting fraternity and a picaresque romp through the industry's most unsavory byways.” ―Julia M. Klein, The Boston Globe
“An enjoyable and educational read, with stories that sound too good to be true and word-for-word conversations that a Hollywood screenwriter couldn't make up.” ―Jonathan Epstein, Buffalo News
“A dramatic rise-and-fall tale . . . Halpern brings unexpected literary heft to the world of debt collection.” ―Kirkus
“By fostering a greater understanding of the workings of debt collection, [Bad Paper] sheds enough light into the shadows to compel readers to push for change.” ―Publishers Weekly
“Bad Paper is nonfiction that reads like the finest thriller: suspenseful and frightening, eye-opening, and even, at times, funny. Jake Halpern's fascinating, fearless tour of the underworld of debt collections introduces us to a cast of characters--the (mostly) men behind the scary phone calls--who deserve to be the stars of the next great HBO drama.” ―Joseph Finder, bestselling author of Suspicion and Paranoia
“Bad Paper is a riveting tale, fast-paced and filled with unforgettable characters. It is also a deeply reported and powerful exploration of America's shadow economy.” ―David Grann, author of The Lost City of Z and staff writer for The New Yorker
“Jake Halpern knows how to follow the money. Only a consummate reporter could have achieved such an intimateview of the two debt collectors he chronicles here. And because he really knows how to tell a story, we can't take our eyes off this nasty business.” ―Anne Fadiman, National Book Critics Circle Award–winning author of The Spirit Catches You and You Fall Down
“Bad Paper is a terrific achievement--for the wonderful Ponzi-scheme absurdity of the story, for the outsized characters and the skeptical sympathy they elicit. It's a book that hangs out in that gray and widening zone where the civilization we take for granted starts to break down, and it reads like Michael Lewis with a sense of the abyss. It's about downward mobility and the subtle apocalypse and it feels important--important in the way few books ever are.” ―Gideon Lewis-Kraus, author of A Sense of Direction
“Jake Halpern's gripping tale provides an unprecedented view into the criminal underbelly of consumer finance. It's required reading not only for everybody with creditors on the line, but for anybody who cares about money or debt.” ―Felix Salmon, senior editor, Fusion
“The old homily ‘there is no place like home' has never been more poignantly and wittily revealed than by Jake Halpern in these lovely vignettes.” ―Studs Terkel with praise for Braving Home
“Strangely fascinating and endearing . . . In short, it's terrific.” ―Bill Bryson with praise for Braving Home
“Not for a long time have I read a book so good and so wise.” ―Robert Stone with praise for Braving Home
Top Customer Reviews
Aaron specializes in the business of collecting debts after banks, credit card, utility, and other companies have given up pursuing debtors and further success seems slim to none. So Aaron becomes the next rung down the ladder, paying pennies on the dollar to banks and others to get their list of debtors. At the start of the book, he's had a bumpy ride (partly due to the downturn in the economy) and owes $14 million dollars to his investors, those individuals or companies who bet that he and his company - Franklin Asset Management - could force enough people to pay on their debts to recoup their investment.
Details of Aaron's life - and that of his associate Benny and others in the business -, are mixed in with plenty of shocking facts about how consumer debt affects the economy. For instance, Americans owe $11.28 trillion (yes, trillion) and $831 billion is delinquent. That's where Aaron enters the picture. All he has to do is collect 10 percent of what was originally owed to companies like Bank of America, Verizon, and others and he can make a fortune.
But it's a rough, often shady, business with often cut throat competition and few ethics.Read more ›
Halpern appears to have wrangled a level of access and trust from the insiders that seems unthinkable as the federal government threatens to expand the institutional creep of the CFPB. His unblinking portrayal of some of the individuals that have been on the other side of the table is unvarnished yet still surprising in some regards. In some instances, Halpern almost makes these human stories come alive with an unwelcome sympathy.
Sometimes redundant, often a tad disorganized, Bad Paper may not be destined to become a lasting portrait of the Great Recession. At the risk of revealing my own bias, Halpern missed the opportunity to really plumb the plight of those who are hounded by the industry. It is however, a revealing and surprisingly interesting read. For those of us in the trenches, it is a fascinating journey into enemy territory.
Aaron Siegel, the lead protagonist in this story, had invested $14 million contributed by 8 others into $1.5 billion (face value) of bad debts, and then learned that some of his portfolio had been stolen - in the form of spreadsheets containing subscriber names, contact and other personal information, and balances. These stolen accounts were being worked by collection agencies in Buffalo, N.Y.
Calling the police was an option - but not likely to result in useful action prior to the paper having been wrung dry. The FTC also potentially offered relief - it had ranked 'debt collection' as the second-largest consumer complaint (88,190 complaints in 2009) since 2006, led only by identity theft. However, it brought just one 'enforcement action' against a company for collections violations in 2009, and done little more since then - three in 2010, four in 2011, six in 2012, and another six in 2013. The CFPB 2013 budget was less than 2% of JPMorgan Chase's for litigation.. A third potential option was the newly created Consumer Financial Protection Bureau - however, it only polices the largest 175 national debt collectors, allowing the thousands of others (like those in Buffalo) to escape scrutiny. So, Mr. Siegel opted to partner with a former armed robber turned debt collector - Brandon Wilson.
Mr. Wilson, not surprisingly, turns out to be not your ordinary debt collector. Early on his mother had him tested, and learned that his scores were at the highest levels.Read more ›
Most Recent Customer Reviews
This is a short very readable book about the debt collection industry. The author follows around people who are employed at every level of the business. Read morePublished 2 months ago by Lionel S. Taylor
This book is a very entertaining and informative read on what happens to a lot of consumer debt when it goes unpaid. Read morePublished 2 months ago by Ryan Ellingson
Debt buyers and collectors can be scam artists. Know your rights. This book is a good first start for anyone wanting to know how to defend themselves against shady collection... Read morePublished 3 months ago by Wheezy
I would consider this short book to be one of the most worthwhile things I've ever read regarding personal finance. Read morePublished 4 months ago by Sam I Am
Clearly, the author worked pretty darn hard on research. I feel like he shines a flashlight into a world that otherwise would've remained unnoticed and obscure. Read morePublished 4 months ago by Mark B
As a consumer credit consultant/teacher, I read this book in just 2 days. Most consumers have NO IDEA how the secret world of debt collectors work and this was an excellent expose. Read morePublished 5 months ago by Laurie Z
This made me realize the dirty world of collection agencies! And how identity gets sold when they find you worthless for running away from your debts. Read morePublished 6 months ago by JHam