Debt collector 'collets' law suit against itself

[Anonymous]

Found this really interesting and frustrating..

https://consumerist.com/2016/08/16/debt-collector-gets-out-of-lawsuit-by-buying-the-lawsuit-out-from...

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@Consumerist wrote:
When you sue a debt collector for allegedly violating federal law, that collector can’t just go behind your back, buy the debt on the cheap at auction and get the whole case dismissed, can it? That tactic worked for one collection agency and, depending on how a federal appeals court rules, it could lead to many other debt collectors buying their way out of legal trouble.

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[pizza1]

WOW...Im floored.

[Anonymous]

This is an amazing article.  I shared it on my FB but also included a summation since the article is quite lengthy.  I'll include that summation here:

* Collection company acquires medical debt and sends notice to debtor.
* Collection company's notice confuses debtor by switching up dates in the notice (one part saying respond in 30 days, another 20).
* Collection company received default judgement at the 20 days.
* Debtor sues for violation of the FDCPA due to the collection company's confusing letter as well as it's name (sounds like a government entity).

Here's where it gets really F'd up:

* Collection company uses it's judgement to have county sheriff seize property. However the "property" seized is the debtors legal right to challenge the judgement in a suit.
* Collection company then sells that "property" at auction.
* Collection company is the only participant in the auction and buy's the debtors legal right to sue for $250.
* Collection company then has FDCPA challenge dismissed since the debtor no longer has the right to sue.

[Anonymous]

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@pizza1 wrote:
WOW...Im floored.

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Yeah, crazy that the legal system allows this. I couldn't believe my eyes when reading the article. 

[iv]

That... is really broken.