With the floundering economy, debt collectors are becoming even more creative with the ways they go after struggling debtors. One of the newest ways is by a so called balance transfer programs. Some debts are unenforceable due to the expiration of the statute of limitations. Since these debts are less valuable to debt collectors, the balance transfer program creates a new way for the collectors to go after these debtors.
Banks and debt collectors are working together by offering the debtor a new credit card. The catch for the debtor is that they must transfer the balance of the old debt onto the new card. This results in the old debt now becoming new again and is enforceable. If the debtor now defaults on the new card, the collectors can pursue a lawsuit against them in court. The federal government is currently going after banks that purposely go after debtors.