Can debt be sold to a collector?

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).

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

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

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.

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.

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.

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.

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.

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.

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

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.

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?

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.

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??

They would probably forward the payment to the collection agency or return it to you since they no longer own the contract.

Ok..I get it. Thanks. TTHAT information was really helpful. Just trying to deal with some things...sure is easier to do that when I KNOW how to deal with it.

If they have paid "valuable consideration" for that debt, and the debt is properly assigned, then a JDB can (and they often do) sue for the full balance owed on that account.

Yes, like Cajun said, they do need to be represented by an attorney as they are merely a Plaintiff; however, I've seen many of these places that have in-house attorneys on their payroll and in that case, they can represent and sue you themselves.

OK cajondog debt belongs to original agency but anyone who buys junk that wasn't collected can sue for full amount later and collect? can you give cases where that is happening consistentley here in the good ole usa? and how long can cos who buy jink debt uncollected keep attempting collecting?

also detcrunch what is valuable consideration? and what laws watch over the determination of valuable consideration?

Quote:

You want proof go to any circuit court jurisdiction in our nation and do a search for plaintiffs by debt buyers name.What you find will amaze you!!!

Chief Justice Benjamin Cardoza once said "even a peppercorn is sufficient consideration".

So, in essence, if the OC felt like trading spices one day, they could exchange your account with a JDB for some peppercorns. That is the law of contracts.

There is a lot of misinformation on this thread. Consumers need to contact attorneys for answers to these legal questions.

A Junk Debt Buyer can sue a consumer on a debt for the total amount due. There ARE some crafty arguments that only attorneys may make regarding the Damages Element of a Breach of Contract claim. However, these mostly fail.

In another instance, some small claims court allow by rule small businesses to represent themselves in court without an attorney.