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Credit Terrorist or Twisted Genius?

I find the story about Craig Cunningham very intriguing. His debt collection story was featured in Better Off Deadbeat [1].

When credit was free flowing, he borrowed over $100,000 and invested in risky stocks and the sub prime mortgage industry. The greedy extension of a well planned credit card arbitrage [2] strategy.

Of course, the recession hit, and now he’s in up to his eyeballs with bill collectors. Except, instead of paying them back, he sues them. And he’s actually quite successful at it; he’s earned settlements totaling more than $20,000.

He’s sues the debt collectors based on violations of the Fair Credit Reporting Act and other consumer protection laws. The debt collectors call him a “credit terrorist” since knows the game and teaches others how to bait the collectors. He’s actually a regular at Fatwallet, and has become somewhat of an expert on suing debt collectors. Here’s an example: Codename47 vs. National Credit Solutions [3].

I’m all for making money where opportunities present themselves, but I’m also a firm believer in paying back debt.

I’ll stick to making my money with things like the Chase Sapphire $100 Sign Up Bonus [4] and the PerkStreet $50 Sign Up Bonus [5], which was just extended, in case you missed it the first time around!

What do you think? Credit terrorist or twisted genius?

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