DEBT RELIEF LAW CENTER
Attorney N. James Turner Can Help
Stop The Harassment!
Whether the debt was assigned or sold can also impact whether the debt collector has authority to collect on the debt. It used to be the case that debts were assigned more often than they were sold. However, the current trend is that original creditors are more likely to sell debts. When a debt is assigned, the collection agency is hired by the original creditor to collect the debt and the collection agency is paid for its services with a percentage of the amount of debt collected.
Unless stated in the contract, if the debt is assigned the consumer does not technically owe the collection agency any money because the collection agency does not have proof that they own the debt. The original creditor continues to own the debt. However, even though the collection agency is acting from the original creditor, they are still governed by the FDCPA.
Collection agencies are now more likely to purchase the debt for a very low amount and then try to collect. If a collection agency purchases a debt they must validate the debt under § 809. If they cannot they are not allowed to:
Since this is the case validation can be a very strong consumer tool. At the very least it can buy some time for the consumer while they wait for the collection agency to validate the loan. Then if the collection agency cannot validate the loan the agency cannot collect on the debt.
If it was not evident already, claims under the FDCPA are quite complicated and require an experienced and resourceful FDCPA attorney to represent you with your claim against aggressive debt collectors. These debt collectors use their experience to exploit loopholes in the law against you. Here at Krohn and Moss, we have been representing clients throughout the United States since 1995 and understand the deceitful tricks used by debt collectors. We have an intimate understanding of the law and compassionately represent our clients to protect their interests.
STARTED SINCE 1990
Orlando Consumer Rights Lawyer - providing aggressive and affordable professional services to consumers who have been victims of debt collection harassment by debt collectors and auto fraud, to residents in Orlando, Kissimmee, and throughout the Central Florida Area.