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Originally Posted by chane  Yes, the CA can legally try to attempt to collect the debt. However, if you never signed a contract with them, you don't legally have to pay them, but most people do. If it went to court, they might try to convince the judge that you agreed to third party involvement if your account became charged off and ultimately the judge would have to figure out whether you did or not and whether they could use that against you. The judge ultimately decides what is "legal" and his interpretation is ultimately the only thing that matters, not yours or the CAs.
I personally refuse to deal with collection agencies EVER. If they want to take me to court, we can fight it out there. But, if you don't educate yourself on the subject or just not show up to court like most people, the judge will reward them a default judgment. At that time, you legally owe them money.
It's legal for them to report it to the CRAs. It's also legal for you to dispute it with the CRAs and sue them if you disagree with it.
Laws can be interpreted many different ways. The CRAs and CAs definitely interpret them differently then us consumers. But smart consumers almost always win in the court of law when they take on these scumbags. Unfortunately, most people don't take them on. They let them push them around their whole lives. |
Wow, thank you very much for taking the time to reply in detail like you did, much appreciated.
So, if I understand correctly, when I signed the original loan contract with the OC, being able to sell the loan to another company and me still being responsible could have been one of the stipulations in fine print, correct?
I figured there was some sort of loop hole because it didnt make sense that the secondary company would purchase the debt, even if it was sold to them for pennies on the dollar if they had no legal ground to collect on it.
Is there a different tactic to pursue when dealing with a collection company or a company that has purchased this sort of debt? Or is the approach the same as if I were dealing with the OC? Thanks again!