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Posted: Wed Nov 21, 2007 10:09 pm Subject: Can debt be sold to a collector?

Someone on another debt board has been telling folks that "bad debt buyers" can only sue the debtor for what they actually paid for the debt. For example, the bad debt purchaser pays $100.00 for a debt of 5000.00. The claim is that the bad debt buyer can only collect the $100.00 they actually paid. Sounds wrong to me. Any info would be a big help.

Posted: Thu Nov 22, 2007 12:42 am Subject:

A debt buyer succeeds to whatever rights the original creditor had under the contract - with two important exceptions. A debt buyer is considered a third party collector under federal law and has to follow the FDCPA (assuming the debt was in default when it was purchased). Second, the debt buyer cannot add interest to the debt unless they are (a) licensed as the same type of lender or (b) charge only the interest the state allows for unlicensed lending (usually between 6 and 10% annually).

Guest · Posted: Sat Nov 24, 2007 12:14 am Subject:

first and foremost let's get some actual debt validation from them please!

Posted: Sat Nov 24, 2007 7:43 am Subject:

The " bad debt buyers" or a collection agency can not sue you at all ...

(NO Collection Agency CAN SUE YOU, ONLY AN ATTORNEY REPRESENTING THE ORIGINAL CREDITOR CAN SUE YOU!) Your contract was with the original creditor.

If they are in violation....start off by filing complaints with the Better Business Bureau (BBB), the American Collector's Association (ACA), the Federal Trade Commission (FTC) and the Attorney General for the state where the company resides.

Filing complaints with each of these agencies will usually result in action being taken and your claim being satisfied.

http://www.ftc.gov/os/statutes/fdcpa/fdcpact.htm

Posted: Sat Nov 24, 2007 8:14 am Subject:

If a collection agency buys the debt then they can collect on the full amount of the debt. The creditor sells the contract, it doesn't matter how much it was sold for the full amount will still be due.

Posted: Sat Nov 24, 2007 8:27 am Subject: debt

i was actually wondering that myself, on some issues, I'm dealing with. I was told, by a lawyer friend of mine, with Cash Call ( and he's 'dealt' with them), if they DO sue, they can't LEGALLY sue for the very high % they charge. However...............I've known several people who haven't paid them in months, in a few cases, a few years, and Cash Call hasn't sued them yet.

Posted: Sat Nov 24, 2007 11:03 am Subject:

Contracts can be assigned unless specific language in the contract prohibits it. Most credit agreements allow the lender to sell a contract (how many people have heard of mortgage companies selling loans right after closing?) but prohibit the consumer from assigning his/her obligations.

Posted: Sat Nov 24, 2007 1:09 pm Subject:

Thanks for the information MCA. I had no idea that the CA couldn't sue you. I am relieved to hear this, as I am dealing with several CA's now and hope to have myself in a better position with them by the end of next year.

Posted: Sat Nov 24, 2007 2:07 pm Subject:

I don't agree with MCA at all. Debt buyers automatically get the right to sue, and even collection agencies can be granted authority to file suit (usually through an attorney) on the original lender's behalf. This is VERY common in the collections industry.

Posted: Sat Nov 24, 2007 2:37 pm Subject:

A JDB has the right to sue but not the ability. Collection agencies cannot sue...they cannot technicially say "I will sue you", because the collector is personally not capable of suing you. The account is assigned out or sold to a legal firm who do the legal work.

Posted: Sat Nov 24, 2007 3:21 pm Subject:

yes if the debt still belongs to the original creditor then the collection agency can NOT sue ( they can only suggest it to the original creditor ) THE ONLY ONE THAT CAN SUE YOU IS THE ONE THAT OWNS THE DEBT

budhibbs.com/coll_to_avoid_list.htm

Posted: Sat Nov 24, 2007 5:06 pm Subject:

Generally the collector sends the debt back to the creditor, and if the creditor sees fit, will send it to their attorneys for litigation. A collector can't just sue at will, without the permission of the creditor.

Guest · Posted: Sun Nov 25, 2007 2:20 am Subject:

so a collection agency who bought the debt doesn't have that power we thought they had? they can collect on full amount but only if you choose to pay what they say you owe right?

Posted: Sun Nov 25, 2007 5:21 am Subject:

Guest any collector who buys a debt can collect for the full amount and they can sue as the owner of the debt. They would need a lawyer to sue you since they are a business.

Posted: Sun Nov 25, 2007 10:24 am Subject: CA

That's alot of good information!! Thanks. So.....if you have a debt with someone, but, they 'sold' the account, to another agency, can you STILL make payments to the ORIGINAL creditor??

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