when Original Creditors SELL accounts...

[tpayne105]

Ok...this just has me baffled.....when a CA purchases an account from an OC (usually for pennies on the dollar---actually how much DO they pay>), are they NOT taking a risk that they will not get paid?  Granted if they did purchase for a small amount, they probably are not losing much. 

Also since you/me, the consumer, signed an agreement with the OC, how can the CA say the consumer owes them money?  When they purchase the account, have you, the consumer, all of a sudden agreed, in writing, by virtue of your original agreement, to owe the CA????

That just baffles me....

Thanks!!

[miay2k4]

Great question.  I also would like add does the oc give all documentation (original contract agreement) about your acct to the ca.  If so wouldn't ca always be able to verify DV. 

[Anonymous]

Im still fairly new to the forums so if I get this wrong I apologize

When you DV a CA you ask for the following items to validate the debt:

• Signed credit application between yourself and the original creditor
• Copies of all signed vouchers from the date account was opened until default
• Copies of all statements from the date account opened until default
• Proof of the statute of limitations
• Proof of agreement that you were hired by the Original creditor (creditor as defined by the FDCPA) or
• A copy of the contract Debt Collection Company Name purchased the alleged debt.
• If the alleged debt was purchased, provide a copy of an agreement between Debt Collection Company Name and yourself, signed by you, stating that you have a contractual responsibility to Debt Collection Company Name for the alleged debt
• Provide proof that Debt Collection Company Name is bonded/Licensed for debt collecting in the State of Your State

Note: They sometimes get away with the you owe them because of the "or assignee" wording in your contract. Hope this helps

As for the OC giving all documentation, not always that swhy you should DV.

Message Edited by litchloath1 on 02-01-2008 09:56 PM

[tpayne105]

bump..just wanted to see if anyone else had any ideas with this?

Thank you