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	FINANCE.REALRESULT.US - FINANCE, PERSONAL FINANCE, YAHOO FINANCE, CAR FINANCE, LEGAL FINANCE, HOME FINANCE. - Why should you care? In an assignment the collection agency does not own the debt and therefore you do not technically owe them any money. Corporate Finance \| Finance Jobs \| Capital One Auto Finance	Map site
12.03.2010 \| 32 \| 21:50:04
Corporate Finance There is no way for a collection agency to prove that you owe them money because there is only an assignment of the debt and not a contract between you and the creditor. One loophole: Some contracts have the wording debtor agrees to be responsible for payment of this debt to creditor OR ITS ASSIGNS.
Finance Jobs This IS a contract between you and the debt collector as well as the creditor and if they can provide you with a copy of a contract that states this you are pretty much stuck and need to negotiate. Corporate Finance. What if the collection agency (Bob) proves they purchased the debt? Is he now the original creditor and no longer subject to the FDCPA? Original creditors sometimes sell debts to collection agencies.
Capital One Auto Finance This does not occur very often. Normally the amount due has to be quite a large sum. Finance Jobs. A collection agency will sometimes check your credit to determine whether or not it looks like it can get any money out of you before it purchases a debt.
American Honda Finance If they do purchase the debt this does not make them the creditor. They are still a debt collector and covered by the FDCPA. Capital One Auto Finance. Continue to treat any collection agency or law firm who says they own the debt as a collection agency subject to the FDCPA.
Household Finance You can still request validation and proof of the purchase because if they cant validate it the collection agency cant prove you owe the debt. Corporate Finance. The Right to Validate Your Debt Under the FDCPA you are allowed to validate this debt and the creditor (in this case the collection agency) must show you proof that you owe the debt to the collection agency (not to the original creditor.) The specific section of the FDCPA: FDCPA Section 809.
Finance Professional Validation of debts 15 USC 1692g (b) If the consumer notifies the debt collector in writing within the thirtyday period described in subsection (a) that the debt or any portion thereof is disputed or that the consumer requests the name and address of the original creditor the debt collector shall cease collection of the debt or any disputed portion thereof until the debt collector obtains verification of the debt or any copy of a judgment or the name and address of the original creditor and a copy of such verification or judgment or name and address of the original creditor is mailed to the consumer by the debt collector. Plus they must show proof positive that you owe them this debt. Corporate Finance. Its not enough to send you a computergenerated printout of the debt.
Home Mortgage Finance There is an opinion letter from the FTC to back this up: It also states that you can sue in federal or state court. Corporate Finance. So if you have them on five violations then you have damages of $5000.
Hsbc Auto Finance Small claims court anyone? When a collection agency responds to your request for validation with a summons to appear (meaning they are trying to get a judgment against you) 1172002: These sneaky collection agencies are starting to catch on to the debt validation concept. (No doubt there is some kind of collection agency newsletter going around telling these folks about the whole process.) Ive heard from my readers that some collection agencies are starting to respond to validation requests with summons to appear in court. Corporate Finance. There is precedent which says that a collection agency cannot even file suit against you if they havent validated the debt.
Nycgov Finance If this happens to you you may cite the case: The appeals court determined: Brennan (plaintiff collection agency attorney) violated 15 U.S.C. 1692g(b) when he obtained a default judgment against Spears (defendant) after Spears had notified Brennan in writing that the debt was being disputed and before Brennan had mailed verification of the debt to Spears. This means that you have an absolute defense in court to deny them judgment if they still have not validated the debt. Corporate Finance. Once you get your FDCPA dispute letter in the collector cannot even get a judgment until they satisfy the FDCPA law.
Complete Finance Guidebook Journal Personal Street Wall, Chase Auto Finance The appeals court overturned the default summary judgment in part because the collection agency lawyer did not meet the rules of the FDCPA. Corporate Finance. This could be grounds for getting a default judgment vacated. Capital One Auto Finance. Its also another violation of the FDCPA and you can collect $1000 from them. American Honda Finance. The Debt Validation Strategy It might be helpful to look at our illustration of the process before you get started. Corporate Finance. You might also want to read this sort of our own validation of the process given here.