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I recently received a dunning letter from a collection law firm.  I sent a DV letter, to which they promptly responded with an allege loan contract, payment history, and personal info.  Who they list as the OC is clearly identified in the loan contract they sent as being an entity that is purely the marketing/servicing arm of the bank that made the credit decision/loan.  This is for a company that routinely hid it's loan activities behind a bank, and as soon as the loan is made, the bank would "sell" the loan to them.  So, am I right to believe that the bank (which  no longer exists), is the true OC and that the company claiming to be the OC must produce a bill of sale?  The company identified in DV response as the OC is not the one attempting to collect.  A JDB is now the supposed owner of this allege debt.  So, I should be looking for two bills of sale, right?  One from the bank OC to the Loan Servicer and one from the Loan Servicer to the JDB?


I hope I explained this clearly enough.  I'm undecided as to what to do next.  I had previously elected private arbitration when I was dunned by a different collection agency well over a year ago.  I find myself really unsure as to whether or not I want to again elect arbitration, take my chances if they file suit, or offer them a settlement.  The allege amount is around $5,000.  Any suggestions?





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I most certainly wouldn't offer them a settlement. If it were mine I would just ignore them and defend a lawsuit if and when it's filed. It's hard to say who the OC is without seeing the documents or a lawsuit being filed yet.


I don't know if the loan servicer is a division of the OC, or if the OC sold it to the loan servicer, they may have just assigned it to them or pay them to service the account. You kind of need a lawsuit and discovery to get to the bottom of everything. I would just ignore them until you have something to attack. In the mean time you can be learning how to fight them in case they do file a lawsuit.

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