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CA's Who Purchase Debts


mpk
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Hi, I have been doing some research and have read that CA's who purchase debts are less likely to sue.

First of all, is this correct?

And second, how can I tell which one of my debts have been purchased by a CA?

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Hi, I have been doing some research and have read that CA's who purchase debts are less likely to sue.

First of all, is this correct?

And second, how can I tell which one of my debts have been purchased by a CA?

I can't answer the first question, but if your account is sold, if should say so on your CR. It will say something like "account sold or transferred". You can call the OC and ask too. Everytime I talked to a OC, I asked specifically if it's been assigned or sold.

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Hi, I have been doing some research and have read that CA's who purchase debts are less likely to sue.

First of all, is this correct?

And second, how can I tell which one of my debts have been purchased by a CA?

heh not likely...the company i work for, we sue all the time...and i work with purchased accounts...

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It also depends on your State Laws. Some States, like California, only allow the OC, or their attorney, in court. Therefore, the buyer can't sue. The only problem is that most Magistrates don't know this, nor do most consumers, so guess what, many slip through. Check your State's laws.

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Nice, I live in California too. Are you telling me that anyone who purchased my debt won't sue me (since I live in CA)? Cause if you are, then I'm gonna go out and have a smoke to relax a bit.

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It also depends on your State Laws. Some States, like California, only allow the OC, or their attorney, in court. Therefore, the buyer can't sue. The only problem is that most Magistrates don't know this, nor do most consumers, so guess what, many slip through. Check your State's laws.

What are you talking about? California FDCPA:

Collection Agencies

The following information was prepared to inform you of your rights under California's Fair Debt Collection Practices Act (Civil Code Section 1788, et. seq.)

NOTIFICATION

The creditor is not required to let you know it is referring your account to a collection agency. An exception is health spas, which must give you advance notice that the debt is being assigned for collection (CC Section 1812.88).

Either in its first contact with you regarding an unpaid bill or in writing within five days after that contact, the collection agency must provide the following information to you (1) the amount you owe, (2) the name of the creditor, and © the process to follow if you dispute the bill. The five-day notification period applies whether the collection agency's first contact with you is by telephone or in writing, but many agencies include that information on their initial written notice, whether or not they have telephoned first.

Each notice demanding payment for a bill must contain the following information (1) The creditor's name (on the first notice) (2) The name, address and telephone number of the collection agency (3) the date the notice was mailed (4) the amount due. If, after the first notice, the total amount due changes, the change must be explained on the next notice (15 USC Section 1692g; CCR Section 620).

RESPONSE

It is important that you respond as soon as possible. If you don't, the agency may keep trying to reach you to collect what they believe is a valid debt.

CONTACTS

An agency may only call between 800 a.m. and 900 p.m. If these hours are inconvenient for you, you may ask the agency to contact you at other times. There is no law that specifically limits the number of calls an agency may make to you, but repeated calls over a short period, which may be annoying or harassing, are prohibited. If you prefer that the agency contact you only by mail, you may ask them to do that. We suggest that you make that request by certified mail and keep a copy for your records (15 USC Sections 1692c & 1692d; CC Section 1788.11(d) & (e)).

When contacting someone other than the person who owes the debt, the collector must give his or her name but not the name of the collection agency (unless specifically asked to give that). When contacting the person who owes the debt, the collector must give either his or her name, or the name of the collection agency.

A collector cannot pretend to be anyone except a collector and must tell the person who owes the debt that he or she is trying to collect the debt. Likewise, a collection agency cannot use any words or symbols in its notices to think the notices are legal documents when they are not, or that they come from anyone other than a collection agency (15 USC Sections 1692b(1) and 1692(e); CC Sections 1788.11© and 1788.13; CCR Sections 627 and 628.5)

HARASSMENT

State law prohibits debt collectors collecting or attempting to collect a consumer debt from using obscene or profane language (CC Section 1788.11(a)). Federal law states that a "debt collector may not engage in any conduct the natural consequence of which is to harass, oppress, or abuse any person..." and also prohibits the use of obscene or profane language to the hearer or reader. (15 USC Section 1692d(2)).

A collection agency or its employees must not threaten to do anything that it cannot legally do. It cannot damage your property or physically injure you or others (CC Section 1788.10).

An agency may only call between 800 and 900p.m. If these hours are inconvenient for you, you may ask the agency to contact you at other times. There is no law that specifically limits the number of calls an agency may make to you, but repeated calls over a short period, which may be annoying or harassing, are prohibited. If you prefer that the agency contact you only by mail, you may ask them to do that. We suggest that you make that request by certified mail and keep a copy for your records (15 USC Sections 1692c & 1692d; CC Section 1788.11(d) & (e)).

To further protect your privacy, collectors cannot use postcards, and envelopes must not contain information showing that they have been sent by a collection agency (15 USC Sections 1692(B), 1692c(B) and 1692e; CC Section 1788.12; CCR Section 627(a)).

EMPLOYER CONTACT

An agency may contact an employer, but only for the following reasons

To verify your employment.

To verify your business location.

To garnish your wages once you have been taken to court and a judgement was entered against you.

To find out whether you have medical insurance to cover a medical bill.

NOTE: In a situation where an agency is legally contacting your employer to verify your employment or business location or to garnish your wages, the agency must make its inquiry in writing. If the agency receives no response to its written communication within 15 days, the agency may contact your employer by other means.

A collection agency can contact you at work unless the debt collector knows or has reason to know that your employer prohibits you from receiving such communication. However, if you don't want to be contacted at work, you can request that they not telephone or send you notices at work. Make your request in writing to protect yourself. If the agency does send you a notice at work, it must be marked PERSONAL AND CONFIDENTIAL. If you request no further contact at work and the agency is unable to contact you at home, the agency may have not another option but to decide to sue you for the amount of the bill it is collecting (15 USC Sections 1692c(a)(3) and ©; CCR Sections 627;© and (d)).

COLLECT CALLS

You do not have to accept a collect telephone call or telegram from a collection agency unless you agree to it in advance. It is illegal for an agency to misrepresent the purpose of a call or telegram in order to trick you into accepting the charges (CC Section 1788.11©; CCR Section 620(d)).

If you want to stop all contact from the agency you may request that they not contact you again. This request MUST be in writing. We suggest that you mail it certified, "return receipt requested" so you have proof of its delivery. Once the agency receives your letter, it's employees can only contact you one final time to explain what action they plan to take. After that, contact must stop. Remember, though, that if you request no further contact in any way, you may leave the agency with no choice but to take you to court (15 USC Section 1692c©).

PARTIAL PAYMENTS

If you are unable to pay the whole amount, you may request that the agency make a payment agreement with you to allow regular payments to pay the bill in full. Make your request in writing and keep a copy for your records. This will help protect you. Although the agency is not required to accept a payment agreement, many agencies will try to make arrangements if you fully explain our situation. However DO NOT MAKE AN AGREEMENT FOR MORE THAN YOU CAN AFFORD TO PAY JUST TO GET THE COLLECTOR TO STOP CALLING YOU. If you make an arrangement with the agency and then fail to make the payments, the agency may cancel the agreement, demand payment in full and possibly even sue you for the full remaining amount.

NOTE: BE CAREFUL TO SEND YOUR PAYMENTS DIRECTLY TO THE COLLECTION AGENCY.

Neither you nor the collection agency is required to sign a written contract, but either of you may ask the other to sign. If there is no written contract, and the collection agency doesn't want to sign one, you may protect yourself by writing them a letter (sent certified) stating the terms you have agreed upon and enclosing your first payment. Tell them in your letter that if they don't agree with the terms you have described there, they should write back to you telling you what they do agree to accept. Keep a copy of your letter or any payment agreement which you sign.

MISSING PAYMENTS

If possible, contact the agency BEFORE you miss a payment or send a partial payment. Explain the problem and what you plan to do to solve it and catch up on your payments. Many agencies will work with you especially if you have already made several payments on time.

PAYEE

Once a debt has been assigned to a collection agency, the collector has the legal right to collect the debt. Therefore if you pay the original creditor and ignore the collection agency, nothing prevents the collector from continuing to pursue the debt and collecting on it a second time. This can become very complicated and therefore it is recommended that you deal through the collection agency or contact an attorney when in doubt (B&P Section 6851(j)).

POSTDATED CHECKS

There is no law preventing a collection agency from requesting a postdated check, however, a few restrictions may apply. The collection agency is prohibited from soliciting you to provide a postdated check for "purpose of threatening, or instituting criminal prosecution." Should a collection agency use this illegal type of collection technique, the issue before a court is whether the "check" is in fact a "postdated check." Therefore, it is advised that if you issue a postdated check, write the word "Postdated" above the date on the check. If you send a check dated more than five days ahead, the agency must send you written notice three to ten business days before it intends to cash the check (15 USC Section 1692f(2), (3) & (4)).

Likewise, collection agencies cannot use the "Bad Check Law" to recover treble damages for postdated checks that were solicited for the purpose of seeking the statutory penalty provided by CC Section 1719.

BILL WAS PAID

If you do not owe the bill, or if the bill has already been paid, send the agency a written explanation along with copies of receipts, cancelled checks and any other information to back up your claim. It is important to send your letter within 30 days after your first contact from the collection agency (15 USC Section 1692g(a)(4)). Once the agency receives your dispute letter, it must stop further attempts to collect the debt until it sends you written verification to show that you do owe the bill and that the amount of the bill is correct (15 USC 1692g(B)). If you are questioning only a part of the bill, the agency may not continue to collect on that part until it has provided verification, but you would still be liable for the rest of the bill.

NOT YOUR BILL

If you are not the debtor the agency is looking for, write and explain the mistake. You may be asked to provide a drivers' license or social security number to prove that you are the wrong person. If you are unsure about you legal responsibility for a debt, check with an attorney.

If the collection agency is unable to obtain verification that you owe the debt, it may return your account to the creditor and stop collection efforts. The agency is not required to notify you if it does this. If the agency does return your account to the creditor, it may be assigned to another agency for collection.

CREDIT REPORTING

Some agencies do supply information on bills they are collecting to credit reporting agencies such as CBI or Trans Union. However, a collection agency cannot threaten to do this unless it is a customer of the reporting agency and actually intends to report your debt (15 USC Section 1692e(8); CC Section 1788.13(f)). The collection agency must also tell the reporting agency whether any dispute has been filed at the time it reports your debt, and it must update your record to show when the debt is paid. It does not have to remove the report at that time.

INTEREST

A collection agency can add interest to your bill, however, the terms and rates depend on the circumstances of your particular account. The collection of any amount (including any interest, fee, charge, or expense incidental to the principal obligation) must be expressly authorized by the agreement creating the debt or as permitted by law. An attorney should be able to tell you how much the agency can legally charge you. You are also entitled to an explanation from the collection agency as to how much they are charging you and why. You should ask them by letter to explain to you in writing.

LEGAL ACTIONS

A collection agency can sue you in either Municipal or Superior Court. A collection agency may not sue in Small Claims Court.

COMPLAINTS

If you feel, after reading this letter that your rights have been violated by a collection agency, you can file a formal complaint with the Attorney General's Public Inquiry Unit. However, you should always try to work out any problems with the collection agency yourself before you file a complaint.

You can contact us at the following address if you want to file a complaint

Attorney General's Office,

Public Inquiry Unit,

P.O. Box 944255,

Sacramento, CA 94244-2550,

Telephone 1(800) 952-5225.

source: http://caag.state.ca.us/consumers/general/collect.htm

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Thanks Chaos for catching that about small claims only. That is what I get for not rereading the law first before remarking. What I was referring to was the Code of Civil Procedure Section 116.420 & 116.430, which defines that better. I'll claim old-age syndrome for my error. MPK, please forgive me.

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Hi, I have been doing some research and have read that CA's who purchase debts are less likely to sue.

First of all, is this correct?

I hate to agree with Cha0sman :) , but a CA with proof who purchased a debt may be more likely to sue. If they feel they can get some money out of you, or force you into settlement, then they'll sue you in a heartbeat. Also, if they purchased your debt and they are a third or even fourth subsequent CA, they probably paid pennies on the dollar for your debt.

So if you're debt is say $6,000 and they paid somewhere in the neighborhood of $250 bucks for it (just throwing out numbers :) ), then I'd go for it, wouldn't you? Even a settlement of say 40% will net them $2,400 clams.

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I hate to agree with Cha0sman :) , but a CA with proof who purchased a debt may be more likely to sue. If they feel they can get some money out of you, or force you into settlement, then they'll sue you in a heartbeat. Also, if they purchased your debt and they are a third or even fourth subsequent CA, they probably paid pennies on the dollar for your debt.

So if you're debt is say $6,000 and they paid somewhere in the neighborhood of $250 bucks for it (just throwing out numbers :) ), then I'd go for it, wouldn't you? Even a settlement of say 40% will net them $2,400 clams.

alot of collection agencies will sue only if they have a reason to though, im not saying that some will just because they feel like it, but, for instance the company i work for, if i have verified that the debtor has a house or verified employment, and they send me a ceise and disist letter..even on just phone calls, unless within 2 weeks they send me a letter with something tangible offer that i can deal with, then i give the account to the lawyer for a suit. and of course if i cant get in touch with the person for like 2 - 3 months after leaving messages on their answering machine everyday, and i know they work some where or they own a home or if i know they own something that is worth auctioning off heh im recommending suit.

On the other hand though, if a person is really having trouble and honestly does not have the money, trust me you can tell when a person is telling the truth about it and when they arent by the tone of their voice. (i have taken many psychology and nlp courses in this before i even thought about collections) then obviously whats the point of just creating more stress on the person's life? especially when you KNOW they wont be able to pay the bill...its basically wasting your money on court fees and such.

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On the other hand though, if a person is really having trouble and honestly does not have the money, trust me you can tell when a person is telling the truth about it and when they arent by the tone of their voice. (i have taken many psychology and nlp courses in this before i even thought about collections) then obviously whats the point of just creating more stress on the person's life? especially when you KNOW they wont be able to pay the bill...its basically wasting your money on court fees and such.

Can you tell lies better before or after you've verified their assets?

Thanks for the post, by the way. It is VERY insightful.

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On the other hand though, if a person is really having trouble and honestly does not have the money, trust me you can tell when a person is telling the truth about it and when they arent by the tone of their voice. (i have taken many psychology and nlp courses in this before i even thought about collections) then obviously whats the point of just creating more stress on the person's life? especially when you KNOW they wont be able to pay the bill...its basically wasting your money on court fees and such.

Can you tell lies better before or after you've verified their assets?

Thanks for the post, by the way. It is VERY insightful.

of course you can tell lies better when you verified assets, honestly even before i even think of touching the phone i research the account, look at when the last pay date was, how much the last purchase was, see if the debtor had any accounts with our company before hand, if so, review the account see how the debtor acted towards the other collector..but even if i do what i BELIEVE to be lies, im not going to straight out call them a liar..because you never know what is going on...they actually could be telling the truth...but if a person does say something in the effect of i dont have a job yet just yesterday i verified his poe...i will say something on the effect of well mr. so and so when did you get terminated from this company...and they respond 6 months ago, then i will respond mr so and so i called this company yesterday and they said that you are still working there you should call their hr department and let them know your current status or something on that order...then they know i know they are working pretty much from there i will tell them listen mr so and so how short of the balance are you? that actually is a very important question, if they honestly have no money, they will say i really do not have anything, but a person that does have the money will say something like i am 500.00 short of the balance...not realizing they just admited to having most of the money...so normally i will tell them, listen here is what we can do i am willing to knock off 1,000.00 that way we can get this out of the way so you dont have to think about this type of stuff before you goto bed, you dont have to figure out how you are going to get out of this situation, and that way the next time you get paid you will have 500.00 more than you would of if you were to pay this whole balance. take a check over the phone and boom..settled...but then you get the people who are screamers, as soon as you call them and they dont pick up you get their answering maching you start to leave a message and they pick up and start screaming at you....actually the other day i called a guy at his work because he disconnected his home phone like and changed it to an unpublished number, this guy is a lawyer..so i call his work, start leaving a message on his answering machine, debtor picks up starts screaming, threatening to come to my house and kill me, etc. apparently i called him a deadbeat...i dont remember this..what i do remember though heh is after he was screaming curses and such i asked him if he kissed his mother with that mouth.......about 15 minutes later i recieve a phone call from the debtor's lawyer asking about the debt told the lawyer i couldnt discuss the debt until i recieved a letter of representation...lawyer sent over a fax to the office, basically stating that i commited a hate crime or something because i allegedly called his client a deadbeat....and is sueing me for punitive damages and is filing hate crime charges against me...but the whole reason for me telling that story is to show you how not to treat collectors, heh, because if he does attempt to file charges against me, the whole conversation was recorded......and mr debtor will be brought up on criminal charges along with punitive damages, and filing false charges charge...along with slandering to my boss in an attempt to make me loose my job......but yeah...off topic i know..but those type of people are in no doubt up for a suit...

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Perfect example of why you shouldn't talk to CA on the phone....PERIOD.

nah seriously, the abusive collectors are few and far between...but i guess this being a kill all bill collectors message board..you all must of experienced some type of unprofessional debt collector...that makes the industry look bad..you know there are people who are very abusive on the phone, i have seen them come and go...quite honestly, those people do not collect anything..maybe 1,000 if that....

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Actually cha0s, I made my comment not because you may have been abusive but because some people can't help themselves and will make threats, etc. and jeapordize themselves.

But don't kid yourself. There's ALOT of abusive collectors in the industry. Even some "mild" collectors will step over the line if their efforts with a debtor are fruitless and they feel they won't get caught. You said so yourself a while back....

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Actually cha0s, I made my comment not because you may have been abusive but because some people can't help themselves and will make threats, etc. and jeapordize themselves.

But don't kid yourself. There's ALOT of abusive collectors in the industry. Even some "mild" collectors will step over the line if their efforts with a debtor are fruitless and they feel they won't get caught. You said so yourself a while back....

yea true...i guess i am trying to make people realize that not all collectors are scum of the earth if ya know what i mean...

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I don't think all creditors are the scum of the earth... I just think that the ones that call ME are the scum of the earth! In any case, I actually spoke to a few friendly ones, but once they realized I couldn't pay anything, their tone changes or they put their boss on... like talking to their boss is gonna make me say "You got me!"

Oh well, in all honesty, I think it's like putting on a different face... once they put that head-set on and start dialing, they feel empowered (and they probably have to feel that way in order to make themselves push helpless people around). Of course this doesn't go for all creditors cause I've had nice ones and I've had real bastards. It's gotta be stressful so I'm sure they get hardened with each call.

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