How do CA's find debts to buy?

[Anonymous]

I just paid off a debt that had gone to collections that LVNV had posted to my credit report.  Ok, that's a good thing.  Two weeks later I get a new letter from LVNV that they have another debt of mine that I didn't even realize that I had defaulted on.  I'm going to send a debt validation letter, blah, blah, blah.  I realized that LVNV smelled blood once I paid off one bill and they decided to see if there was anything else out there for them to snatch up to squeeze me for.  How do I find out what else, if anything, is out there before the CA's do?  

[sarge12]

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@Anonymous wrote:

I just paid off a debt that had gone to collections that LVNV had posted to my credit report.  Ok, that's a good thing.  Two weeks later I get a new letter from LVNV that they have another debt of mine that I didn't even realize that I had defaulted on.  I'm going to send a debt validation letter, blah, blah, blah.  I realized that LVNV smelled blood once I paid off one bill and they decided to see if there was anything else out there for them to snatch up to squeeze me for.  How do I find out what else, if anything, is out there before the CA's do?  

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Not sure I understand what you are saying...how can you not realize that you defaulted? Is it a medical collection? When an account is somewhere between 90-120 days past due the debt will go to collections...usually under contract with lender for all such accounts. Some lenders sell the debts for pennies on the dollar, and some actually retain ownership and pay a fee to the CA for their collection services. Pull your full credit reports, to see what is showing a balance or is in collections. Also, collection accounts are sometimes bought on the open market.... John Oliver created a sensation when he bought $15 million of medical debt owed by 9,000 Americans and forgave it on national television. Oliver and his "Last Week Tonight" producers created a phony debt-buyingcompany and paid less than $60,000 to buy a portfolio containing millions of dollars of consumer debt, shining light on the shady practices of the debt-buying industry....as copied from an internet source.

[Anonymous]

In this case, I believe it could be a utility bill that I forgot about form an apartment that I moved out of in 2012 or 2013.  Completely forgot about if that's the case.  It's not on my credit report and this is the first that I can recall hearing about it in quite some time (obviously).  How do I find out if there are other things that aren't on my credit report that are just lurking out there?

[sarge12]

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@Anonymous wrote:

In this case, I believe it could be a utility bill that I forgot about form an apartment that I moved out of in 2012 or 2013.  Completely forgot about if that's the case.  It's not on my credit report and this is the first that I can recall hearing about it in quite some time (obviously).  How do I find out if there are other things that aren't on my credit report that are just lurking out there?

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Someone else can chime in, but to the best of my knowledge until it shows on collections or your credit report...you can't. If the CA can't validate the debt, I would not pay it. Some of these CA are real bottom dwellers and are even trying to collect on debt that is outside the SOL.

[Anonymous]

Ok, since we're talking SOL's.  If something is beyond the SOL but still less than the 7 years for the CRA's can a collection agency still put a collection on your credit report.

[sarge12]

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@Anonymous wrote:

Ok, since we're talking SOL's.  If something is beyond the SOL but still less than the 7 years for the CRA's can a collection agency still put a collection on your credit report.

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My understanding is the SOL only deals with the ability to sue...not the CRA requirements...so yes if the debt is valid it can post on the credit report, but the CA can't take you to court to collect.

[kshurika]

SteelTherapy, sarge12 is giving you good advice. Here in Cali, the statute is four years. Once you've crossed that line, things swing radically in your favor. Validate the debt and the CA's authority to collect it. Either wait for it to fall off (one of mine dropped off after only 6 years), or go through the process of negotiating by registered mail and drive a hard bargain.

[Remedios]

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@Anonymous wrote:

Ok, since we're talking SOL's.  If something is beyond the SOL but still less than the 7 years for the CRA's can a collection agency still put a collection on your credit report.

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It can show on your report if the date of first delinquency is less than 7 years and 180 days 

(maximum time derogatory can be on your report is 7 and a half years). 

Most of the time CRAs remove derogatory items around 7 years. 

[RobertEG]

A debt collector can, after obtaining collection authority, delay in initiating any collection activities or reporting their collection to a CRA, with no requirement to then provide any notice to the consumer.

It is only the initiation of communication with the consumer that then triggers dunning notice requirement.

A debt collector can first report to a CRA prior to any communication with the consumer.  Case law has generally held that reporting to a CRA also triggers requirment to send dunning notice, but that is not an express requirment of FDCPA 809(a).

It can thus be an extended period before a consumer gets notice of the assignment or purchase of a debt for collection.

As for whether a debt collector normally seeks out new debt to purchase by specific consumer name, that is not generally the scenario.

Most creditors who sell their accounts receivable assets bundle them into groups and sell as a portfolio, not as individual accounts.

Bundled portfolios are then rated as to risk level, with those having reached serious periods of delinquency, such as charged-off accounts, selling for the lowest percentage of their debt value. 

Some debt buyers deal only in debt that is not delinquent, and provide instant cash to creditors who are in a current cash bind.

Sale of non-delinquent debt is referred to as "factoring," and often does involve the assessment of individual consumer risk as part of the purchase procedure.