Who is considered the original collector?
Date: Tue, 01/16/2007 - 07:31
Budmas
Southwestern Bell is the original creditor.Asset Acceptance is a
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.
After reading what I wrote again it does kinda sound like "Whos
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.
Just messing with you. I can follow what you say, and I think yo
Just messing with you. I can follow what you say, and I think you expressed it very well.
Quote:Asset is now the owner of the account but not original cre
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.
Ok, here's the situation with it as far as my CR goes. CBCS is t
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
Howard, you are not correct. The fdcpa covers debt purchasers an
Howard, you are not correct. The fdcpa covers debt purchasers and they are not considered orginal creditors.
I just maxed it up. fdcpa is for debt collectors and the attorne
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" ?
When I sent out my DV letters I sent them to the collection agen
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..
taksmom476, Thank you for explaining the rules for this post. I
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.
Ok, that cleares most of my confusions. Thanks taksmom and thank
Ok, that cleares most of my confusions. Thanks taksmom and thanks cajun :)
Your welcome Howard.Just want to insure correct info is put out.
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.
To put it simply, the law CLEARLY recognizes three people, The O
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.
I read only one case where a original creditor was held accounta
I read only one case where a original creditor was held accountable under the fdcpa.
Nielsen v. dickerson
there is probably more but I am still looking.
That is surprising that an Original Creditor was held liable und
That is surprising that an Original Creditor was held liable under the fdcpa at all, as that law does not apply to original creditors. Many companies will use the FDCPA as a standard for how they go about collecting their own receivables, but they are not legally required to abide by it, and cannot be sued or held legally responsible for violating it.
It is important to remember that just because a debt buyer purchases a debt, either from the original creditor (Say Target for example ) they do not "become" the original creditor. They are still legally considered a debt collector, and must abide by the FDCPA and other applicable laws.