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Debt collector attorneys representing credit card company?


Kokomoj0
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It is my understanding that these credit card companies charge off the debt and then law firms buy up this charged off debt for pennies on the dollar and then go after the debtor as if they are representing the the credit card company when in fact they are prosecuting their own case in the name of the credit card company.

I am doing research on this and other credit matters and from what I have been reading this is fraud?

Is there any way to prove in court that the attorneys are doing this?

Or point me to an existing thread maybe how one would approach this in court? Not asking for legal advice, never ever, just information for review would be greatly appreciated :)

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You've got to have a cause of action to get the courts involved. Only an atty general or other gov agencies can bring claims or charges like your talking about. You don't have a private right of action if they violate the law if it is not directly related to you or your case.

In other words you don't have a dog in the fight. If they sue you and they do as you claim, then you would have a dog in the fight. It's the same as if you see a crime taking place. You can report it to the police and assist by testifying in court to what you saw, but you can't prosecute the case or sue the law breaker.

Also, I think your confusing "charged off." Charged off has zero to do with ownership of the account. The IRS, no later than 180 days after default, requires for accounting purposes that the creditor take a loss on the account. It does not require they sell the debt, stop collecting, or restrict their right to sue. There is no formula on when they sell the debt off, if ever. They can charge the account off and still keep ownership and even sue on a charged off debt.

Also, they usually have legal jargon disclaimers in their letters and court filings that technically disclose they are in fact not suing in the original creditors name.

What your describing is not one of the more common violations. They are stupid sometimes, well a lot of the time, but they usually stick to fraud and deception where it is not so easy to spot.

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I am doing research on this and other credit matters and from what I have been reading this is fraud?

Do some research into Brock and Scott, Bullhead Investments, Channel Group, etc. It will give you some additional insight into the attorney/debt buyer scheme.

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Also, I think your confusing "charged off." Charged off has zero to do with ownership of the account. The IRS, no later than 180 days after default, requires for accounting purposes that the creditor take a loss on the account. It does not require they sell the debt, stop collecting, or restrict their right to sue. There is no formula on when they sell the debt off, if ever. They can charge the account off and still keep ownership and even sue on a charged off debt.

Small correction here. The FDIC (not the IRS) has guidelines that FDIC insured banks should "write off" non-performing loans within 180 days of default...they needn't wait the full time. BUT...we have never found any evidence that this 180 day guideline applies to the credit card issuing subsidiaries of those banks. We do have evidence that CC companies carry non-charged off debts on their books for years. Its all a game of making there P&L look good...
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Guest usctrojanalum
It is my understanding that these credit card companies charge off the debt and then law firms buy up this charged off debt for pennies on the dollar and then go after the debtor as if they are representing the the credit card company when in fact they are prosecuting their own case in the name of the credit card company.

I really do not think this is happening as much as people believe it is. If it does happen, it is remote and isolated. It is way too easy to get caught, because once it is sold the OC will not lie for the person they sold it to and will update the credit reports to sold/transfered to another lender.

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