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 Posted: Tue Jan 16, 2007 8:31 am Subject: Who is considered the original collector? |
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This is kind of an extension of a post a made a week or so ago. I have a CA called CBCS trying to collect for Asset Acceptance who is trying to collect for Southwestern Bell. I sent a validation letter to CBCS and requested documentation of the original account. To be honest, who would be the original account as far as this situation goes? Or who is it legally according to the FTC? I just want to make sure for/if they respond with any information. Thanks.
Budmas
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budmas
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| Posted: Tue Jan 16, 2007 9:00 am Subject: |
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Southwestern Bell is the original creditor.Asset Acceptance is a debt buyer.So legally speaking SB is original creditor and Asset acceptance and whoever is collecting on their behalf would have to abide by the FDCPA.Asset is now the owner of the account but not original creditor.
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taksmom476
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| Posted: Tue Jan 16, 2007 10:21 am Subject: |
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That sounded like a "who's on first" spinoff.
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jedijeff13
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| Posted: Tue Jan 16, 2007 12:22 pm Subject: |
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After reading what I wrote again it does kinda sound like "Whos on first".But I think mines a little better to understand..Or at least i hope so.
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taksmom476
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| Posted: Tue Jan 16, 2007 12:52 pm Subject: |
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Just messing with you. I can follow what you say, and I think you expressed it very well.
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jedijeff13
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| Posted: Tue Jan 16, 2007 4:16 pm Subject: |
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| Quote: | | Asset is now the owner of the account but not original creditor |
Asset becomes the current creditor after purchasing the account. They get the same leverage just like the original creditor.
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Howard
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| Posted: Tue Jan 16, 2007 5:28 pm Subject: |
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Ok, here's the situation with it as far as my CR goes. CBCS is trying to collect, but on my CR, it's Asset that has reported it. Should I send a DV letter to Asset, too? Or was my letter to CBCS sufficient if they do not verify, to have it removed from my CR?
Budmas
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budmas
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| Posted: Tue Jan 16, 2007 5:30 pm Subject: |
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Howard, you are not correct. The FDCPA covers debt purchasers and they are not considered orginal creditors.
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cajunbulldog
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| Posted: Tue Jan 16, 2007 5:35 pm Subject: |
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I just maxed it up. FDCPA is for debt collectors and the attorneys, right??
The original creditor doesn't need to follow the FDCPA.
If a debt collector purchases the debt, they become the current creditor, not original creditor, right?? Is FDCPA applicable on the said "current creditor" ?
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Howard
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| Posted: Wed Jan 17, 2007 7:11 am Subject: |
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When I sent out my DV letters I sent them to the collection agencies that sent the letters out to me.How long has it been since you sent it?If CBCS is collecting for Asset, they should be able to get the validation from them to send to you.I would give them at least a month or 2 to validate. After that time send them a follow up letter,with a copy of your original letter.
As for the debt purchasers rights under the FDCPA. They fall under collectors.
| Quote: | FDCPA section 803(4) defines "creditor"
as any person who offers or extends credit creating a debt or to whom a debt is owed,but does not include any person to the extent that he receives an assignment or transfer of a debt in default soley for collecting that debt. |
Heres a paragraph on how the FTC catagorizes debt purchasers.
| Quote: | | Section 803(6) of the FDCPA defines the term "debt collector" as "any person who uses any instrumentality of interstate commerce or the mails in any business the principal purpose of which is the collection of any debts, or who regularly collects or attempts to collect, directly or indirectly, debts owed or due or asserted to be owed or due another." In our view, a party that purchases delinquent accounts from the party to which the debts were originally owed and attempts to collect them from the consumer debtors fits clearly within that definition. The party is attempting to collect debts that were "owed or due another" and the fact that title to the accounts is passed to the collector in no way changes that fact. |
http://www.ftc.gov/os/statutes/fdcpa/letters/arbuckle.htm
Hope this helps some..
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taksmom476
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| Posted: Wed Jan 17, 2007 7:37 am Subject: |
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taksmom476, Thank you for explaining the rules for this post. I was going to post my reasons for posting what I had said,but got busy at work and just getting back to computer now.
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cajunbulldog
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| Posted: Wed Jan 17, 2007 5:19 pm Subject: |
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Ok, that cleares most of my confusions. Thanks taksmom and thanks cajun 
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Howard
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| Posted: Thu Jan 18, 2007 8:45 am Subject: |
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Your welcome Howard.Just want to insure correct info is put out. If they were not covered by FDCPA, then the act would give us very poor protection in my opinion.Thankfully the government did protect us from these sharks.
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cajunbulldog
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| Posted: Thu Jun 19, 2008 3:03 pm Subject: Assets Acceptable Asignee of Southwestern Bell |
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 HELP!!!!!!!!
LAWSUIT PENDING!
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jazzJaun2
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| Posted: Thu Jun 19, 2008 4:15 pm Subject: |
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To put it simply, the law CLEARLY recognizes three people, The Original Creditor (Not LEGALLY bound by the FDCPA), Collectors (this includes Debt buyers and Collection Attorneys, all of whom have to abide by the FDCPA) and US, the Consumers.
Just because a bottom feeding collection agency like Asset Acceptance buys an old debt, does not make them the original creditor nor does it purchasing that debt grant them any special rights or exemptions. This is made clear in an FTC Staff Opinion addressed to Kim Arbuckle of Midland Credit Management (another bottom feeder).
When a debt collector buys a debt deemed uncollectable by the original creditor, they are gambling that they will be able to get the consumer to pay that bill. They often buy these debt for mere pennies on the dollar of the value of the original debt, so if they can get even 30 or 40% of the face value, they are seeing a large return on their investment.
Check out this resource for more FTC Staff Opinions on various points of the FDCPA.
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Last edited by LCW on Fri Jun 20, 2008 7:16 am |
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