Debt buyer vs debt collector?

Where has everyone been?

We're here, I just think we were all extremely confused by that "law speak" paragraph! :)

Try posting this in another forum, dealing with law. I don't think anyone here would be able to figure all that mumbo-jumbo out, let alone tell you what it means.

Sorry! Maybe someone else can help...

let me give this a try.yes,an attorney that just does collections still must be licensed and follow the FDCPA.some lawyers will still act like they don't have to.they still must validate debt if requested to do so.i have seen alot of threads that post that some CA's are claiming to be attorneys when in fact they are not.suppose an attorney were retained to recover a debt,more than likely they will provide all documentation to ensure proper resolution.if it is a supposed attorney that bought the debt for pennies on the dollar,then that's when you get some of the stories you seen here at times.
in short,yes an attorney must follow the fdcpa if they are collecting a debt.sorry for rambling,but i have seen alot of this on this forum with lawyer questions.

That is what I thought Paul, thanks. Going to some of the attorneys websites all they do is debt collection and if it a basement lawyer, they still list they are a debt collector on their letters.

happy to shed some light on the subject,been there,done that,as far as some CA's posing as lawyers.glad i could help. :D 8)

I've seen it published in an official source [can't remember where, but may well have been the FTC website] that fdcpa applies to attorneys if "they regularly collect debts." Try searching over at www.ftc.gov.

Might be a 'stupidity' question. But...IS there a difference between a Debt Buyer and Debt Collector? I of, i've heard of a Debt Collector, but, not a Debt Buyer.

[Junk] debt buyer = collection agency that buys old debt for pennies, then tries to coerce full payment. LVNV / Resurgent / Sherman, et al spring immediately to mind here.

Thank you Unclewulf, that is who I am dealing with now. LVNV funding is not licensed to collect debt in Massachusetts and neither is the attorney who is suing me for them. The attorney says on their website that their business is debt collection.

The funny thing is that Resurgent Capital Services is licensed to collect debt in my state but if you have a D/B/A you must have them listed or licensed. So I have a perfect defense as far as LVNV and the attorney go, lol.

Maybe you've got something with the Resurgent/LVNV biz license, but you've got nothing on the attorney (at least, not based on what you've posted in this thread).

LVNV owns the debt.
The attorney is working for LVNV.
Therefore, the attorney is not acting as a debt buyer (it is unknown if the attorney/law firm purchases any debts).
If the attorney is not a debt buyer, then the exclusion applies--the attorney does not need to be licensed as a debt collector.
The attorney needs to follow fdcpa and state debt collection laws, however.

Well the attorney files thousands of lawsuits every year against debtors. I doubt very much they are acting as an attorney because attorneys cost about $200/hr? If they are doing all this work on a $2,300 debt, how will anyone be making any money?

The attorney only buys the debt for pennies on the dollar if he is successful with a lawsuit. If they are not able to sue, they just give the file back to the JDB. The office has 5 attorneys and probably 40 or more debt collectors.

So how would they not have to be licensed?

If you think about it, it really doesn't matter. If the lawyer owns the debt and is collecting it on its own behalf, they have to abide by all the laws (including licensing). However, if they are acting on behalf of another company, just bypass them and send the DV to the CA that hired the lawyer. You can include a copy of the letter to the laywer as well. JUst because they are a lawyer does not give them any more power over you, CAs just use them to try and scare you into paying. Heck, if the lawyer still tries to collect after you DVed the CA, you have the CA on violations because of the continued collection activity on their behalf! Especially if you also sent the same letter to the lawyer that you sent to the CA, but honestly, it is up to the CA to stop the lawyer once they get a DV demand.

Oh...I get it. You provide new information in an attempt to elicit a new response when you didn't like the answer I provided.

Why don't you go to a law library and research the extent of the Attorney-at-Law exemption, or pay an attorney for a consult? On the other hand, if you are dead set in pursuing the matter, why not file suit against the attorney. If you lose, you'll only be out the filing fee and have a judgment recorded against you for the defense's attorney fees (pursuant to your MA state law).

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See Heinz vs Jenkins.A nice Us Supreme court case which answers the question of a lawyer being subject to fdcpa.

I studied Heintz vs Jenkins very closely. I did it mostly for the fact that if I am ever questioned on it by the court, I will know. I also remember most of the fdcpa and my states debt collection laws.

In the case of the FDCPA and my states laws the only difference is the definition of debt collector. I am wondering if state law would be preempt by Federal law.

You are still missing the point.

An attorney is exempted by law from the requirement to be a licensed debt collector, except when the attorney is a debt buyer. The exemption does not prohibit an attorney from collecting debts without a debt collection license when he/she does so on behalf of a client.

Can you prove in a courtroom that the attorney purchases debts? If you cannot, then focus your efforts in a more productive manner. The only issue you have raised in this thread pertains to licensing, and it has previously been stated that attorneys need to abide by state law and fdcpa.

I understand what you are saying. The thing these attorneys are doing in Massachusetts is if they don't collect then the client doesn't pay. If they do collect, they keep 33.3%

If anything I would say it's a violation of the fdcpa 1692e(3)because the 3 letters I have from them are a printed signature and he is not the one in charge of the case. I have called 5 times and every time they told me he is not in charge of it.

Anyways this is a list of their clients:

ABN AMRO
American Home Loans
American Home Mortgage Corp.
Associated Credit Services
Bank of America
Belmont Savings Bank
Bridgewater Credit Union
Capital One Bank
Cavalry Portfolio Services
Citicorp
CitiMortgage, Inc.
Country Mortgage Corporation
Crown Asset Management
Eastern Bank
First Resolution Investment Corp.
Ford Motor Credit
Long's Jewelers, Ltd.
Millbury National Bank
Maritime Mortgage Corp.
MortgageSelect
National Grid
NSTAR Electric & Gas
Oliphant Financial Corp.
Option One Mortgage Corporation
Paragon Way
Patriot Funding, L.P.
portfolio recovery associates
Randolph Savings Bank
Resurgent Capital
Risk Management Alternatives
Rockland Federal Credit Union
Rockport National Bank
Wellesley Co-Operative Bank
Wells Fargo
The Westborough Bank
Winchester Savings Bank

lgw.com

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