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Posted: Mon Jul 21, 2008 4:37 am Subject: Debt purchasers and FDIC

Here is one I started contemplating, if someone purchases a debt most states allow continued accruing of interest, however with financial accounts where credit is extended (i.e. credit cards) FDIC statutes state that after 180 days of delinquency the account must be charged off. How would this effect the transferal of ownership in the case of debt buyers? At the very least I'm sure that it would keep additional fees such as over limit and late fees from being accessed.

Posted: Mon Jul 21, 2008 4:49 am Subject:

FDIC is a form of government insurance; it only applies to FDIC-insured banks. The FDIC forces its banks to chargeoff accounts greater than 180 so that the banks aren't grossly overstating their assets.

Since JDBs are not required to be FDIC-insured, those regulations do not apply.

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