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How to lay the smack down on a JDB using the UCC


Methuss
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Got this little diddy from Daniel Edelman:

An absolute assignee (bad debt buyer, as opposed to one taking assignment for collection or collection agency) is subject to Article 9 of the UCC, which covers sales of receivables as well as security interests.

Send a certified or faxed letter requesting assignment or assignments necessary to show title in plaintiff under UCC 9-406. The way 9-406 is written the debt buyer is not entitled to payment unless it provides a copy of the assignment(s). If you've already been sued wait about 10 days after they get your letter and then move to dismiss on the ground that there is no obligation to pay.

Section 9-210 of the Uniform Commercial Code gives right to accounting, defined as breakdown of what debt consists of. Unlike the FDCPA, the debt buyer does not have the option to cease collection in lieu of responding. There is $500 statutory damages for noncompliance.

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Got this little diddy from Daniel Edelman:

An absolute assignee (bad debt buyer, as opposed to one taking assignment for collection or collection agency) is subject to Article 9 of the UCC, which covers sales of receivables as well as security interests.

Send a certified or faxed letter requesting assignment or assignments necessary to show title in plaintiff under UCC 9-406. The way 9-406 is written the debt buyer is not entitled to payment unless it provides a copy of the assignment(s). If you've already been sued wait about 10 days after they get your letter and then move to dismiss on the ground that there is no obligation to pay.

Section 9-210 of the Uniform Commercial Code gives right to accounting, defined as breakdown of what debt consists of. Unlike the FDCPA, the debt buyer does not have the option to cease collection in lieu of responding. There is $500 statutory damages for noncompliance.

Wonderful! You must work in the legal field! Great work!!

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does the UCC vary from state to state? just curious

The point of the UCC is that the law be Uniform in all states that adopt it. So no, the minimum requirements won't be different. A participating state can (and sometimes does) adopt laws that are more restrictive than the UCC, but not less.

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A 'receivable' is money owed TO you. When a JDB buys a portfolio of bad debts from an OC (the debts are the OC's receivables) , you essentially owe the money to the JDB, therefore it becomes a receivable for the JDB. That sale from the OC to the JDB is the 'sale of receivables' covered under UCC Article 9.

"Security Interests" - in a mortgage or car loan, the 'security' for those loans is your house and your car. The lender then has a 'security interest' in the house or car. Some furniture stores retain a security interest in your purchases, making your debt to them secured, just like a house or car.

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