Questions about a CA buying a Debt
Date: Tue, 11/25/2008 - 09:06
Does the Original Creditor give it to the to collect on there behalf?
If they do sell the debt do they sell it at the cost of the original debt? What I mean here is that the original debt was for 11k and now with fees is up to 15k. Do you know how much they pay if they do buy the debt?
Thanks For all the help
CAs can buy 'junk' debts from other CAs for pennies on the dolla
CAs can buy 'junk' debts from other CAs for pennies on the dollar and some are contracted from the original creditor.
I am not a lawyer, but I do believe that in most states, the CA cannot tack on addtional fees. Any additional fees have to be from the orginal creditor, i.e. late fees, interest, etc.
If you are being contacted by a CA about a debt, send them a debt validation letter (DVL), certified mail, return receipt requested. A DVL is basically a letter requesting that they prove to you that they are licensed and legally alllowed to collect this debt from you. They must also provide you with any and all paperwork they have regarding the debt, including the orginal amount and any additional fees that have been added on.
you can search the internet for templets of DVLs to guide you through the process.
So If they bought it at 15k for pennies on the dollar. We would
So If they bought it at 15k for pennies on the dollar. We would be saying they bought it for 2-3k? Just curious.
That, or less. They buy thm in "bundles" or portfolios, and then
That, or less. They buy thm in "bundles" or portfolios, and then try to collec on them. Sometimes, it is passed around the agency, and others they re-sell it.
What do the original creditors do to the money owed? They would
What do the original creditors do to the money owed? They would lose a hell of a lot of money selling them for that low.