Collection agency bought my debt, can they collect?

[Flypilot]

A collection agency bought my debt, do they legally have any right to it?

I was told that if a collection company buys your debt, which is usually for pennies on the dollar, they legally have no right to collect because they are not the binding contract holder.

I know they use scare tactics/letters etc to try and get you to pay. The account has already charged off on my report which means that the credit grantor has written the debt off as bad and will likely not pay taxes on it, correct?

Chane, how do we handle these clowns?

Flypilot

[chane]

I believe that is correct. Without a contract, or a court judgment, they are breaking the law by reporting the account to the CRAs. They are trying to harm you economically by lowering your credit scores, by saying that you owe them money when they have no contract with you. It's extortion.

You need to let them know this and let them know they need to remove it.

Charge offs are tax write offs, but that doesn't let you off the hook if it's a legitimate debt. You still owe it until the statute of limitations is up (usually 5-7 years depending on your state). The OC can report for up to 7 years, by law, (again, it must be legitimate). If it is and you promised to pay them, you ought to pay them.

[Flypilot]

Chane,
so who can order the judgment in a court of law? I would assume that only an attorney that is directly representing the credit card company can do that. The collection agency should not be able to order a judgement for repayment on debt they purchased right?

your thoughts?

Flypilot

[chane]

Originally Posted by Flypilot

Chane,
so who can order the judgment in a court of law? I would assume that only an attorney that is directly representing the credit card company can do that. The collection agency should not be able to order a judgement for repayment on debt they purchased right?

your thoughts?

Flypilot

A judge is the only one who can order a judgment. If they sue you, the judge hears each of your cases and awards them a judgment if they can prove you owe them money.

[Flypilot]

Originally Posted by chane

A judge is the only one who can order a judgment. If they sue you, the judge hears each of your cases and awards them a judgment if they can prove you owe them money.

I understand the way a judgment is obtained. The real question here is...can the collection company who "bought" the debt put a judgment on you. If they have no legal right to the debt since they purchased it, they should have no right to put a judgment on you, right?

Fly

[chane]

Originally Posted by Flypilot

I understand the way a judgment is obtained. The real question here is...can the collection company who "bought" the debt put a judgment on you. If they have no legal right to the debt since they purchased it, they should have no right to put a judgment on you, right?

Fly

If a CA sues you and you don't show up to court, the judge will more than likely award a judgment in their favor. Or if you do show up and they can convince the judge you owe it or you admit you owe it or whatever.

[Flypilot]

Originally Posted by chane

If a CA sues you and you don't show up to court, the judge will more than likely award a judgment in their favor. Or if you do show up and they can convince the judge you owe it or you admit you owe it or whatever.

I am assuming that you mean "collection agency" when you type CA. How can a collection agency sue me if they purchased the debt? The collection company/laywer that I recieved the letter from demanding payments openly admits they bought the debt/file.

So these flippin lawyers are like ambulance chasers where they buy debt that has been written off by credit card companies and then try to take you to court to get the money.

Two things: 1) my wife never signed for the credit card so there goes the validation. 2) We already recieved a letter from them saying the debt was being charged off to bad debt and the account on the CRA's references a zero balance .

Your thoughts?

Fly

[chane]

Originally Posted by Flypilot

I am assuming that you mean "collection agency" when you type CA.

Yes, you can find all of our abbreviations and acronyms here:

Credit Repair Acronyms/Terminology

How can a collection agency sue me if they purchased the debt? The collection company/laywer that I recieved the letter from demanding payments openly admits they bought the debt/file.

Technically anyone can sue anyone for anything in this country. What is important is if they have a case or not. I am not a lawyer, but if they don't have a contract, they probably don't have a case and if you show up and fight it, they would probably not be awarded a judgment.

So these flippin lawyers are like ambulance chasers where they buy debt that has been written off by credit card companies and then try to take you to court to get the money.

Yes, it's a multi-BILLION dollar industry.

Two things: 1) my wife never signed for the credit card so there goes the validation. 2) We already recieved a letter from them saying the debt was being charged off to bad debt and the account on the CRA's references a zero balance.

Your thoughts?

Is there a reason you feel like you don't owe this money? I guess I'm not quite understanding what you are wanting to do. Are you trying to get out of paying a legitimate debt? Or is there some reason you feel like you don't owe it?

I hate collection agencies more than anyone, but I believe in paying back what I borrow if I'm capable and if the terms are fair.

[jjgross]

Originally Posted by chane

Yes, you can find all of our abbreviations and acronyms here:

Credit Repair Acronyms/Terminology



Technically anyone can sue anyone for anything in this country. What is important is if they have a case or not. I am not a lawyer, but if they don't have a contract, they probably don't have a case and if you show up and fight it, they would probably not be awarded a judgment.



Yes, it's a multi-BILLION dollar industry.



Is there a reason you feel like you don't owe this money? I guess I'm not quite understanding what you are wanting to do. Are you trying to get out of paying a legitimate debt? Or is there some reason you feel like you don't owe it?

I hate collection agencies more than anyone, but I believe in paying back what I borrow if I'm capable and if the terms are fair.

Every time you sign the credit card receipt you agree to the card terms read your small print in the terms and conditions.

[Flypilot]

Heres the deal..... Yes we owe the debt. However, When the credit card company proceeded to raise our rate from 3.9% to 32.9% when we were not more than 14 days past the due date and then close the account on us after we gave them hell, I gave them a choice....

1) you can lower our rate back down and show the account on our reports as open and active

OR

Simply, were done making payments....

Our payment went from $450.00/month to $1,050/month.

There was no way to keep making the pmts...

Now it is charged off and shows a zero balance on the reports.


Flypilot