Paying the debt depends upon the circumstances of the debtor. Common sense would dictate that the majority of people would pay their debts if they were able. When a debt is sold by the original creditor to a third party, the debt remains valid and all the terms of the original agreement apply until the account is paid or settled, either voluntarily or by legal remedies. The party that purchased the account will generally offer a settlement for less than the entire amount of the debt or a payment plan. Be very cautious in making any such agreements, the interest rates for a payment agreement can be as much as 30% depending on state usury laws.
YES, they purchased a debt contract. The original creditor does not forgive / eliminate a debt by selling it to a collector -- they simply gave-up on collecting a worthwhile settlement from you.
Yes, the debt still stands. It's how debt collectors stay in busniess. When the debt or account is sold, the debt isn't erased, merely transferred. In essence, the original lender has sold the whole contract. * The debtor makes any payment agreement with the collector not the original creditor.
Yes. You've moved the debt from one account to another, so the first account would recognize the transfer as a payment and the second account would treat it as a new debt.
Depends on which USA state where you live - Check Debt with Statute of Limitations; and http://www.bcsalliance.com/y_debt_sol.html
Collection agencies are usually retained by the establishment that you owe the defaulted debt to, if the borrower ( person in debt) does not want to work with the collection agency handling their debt, the collection agency will then document the account as a refusal then send the account back to the original lender then they will garnish your wages until the life of the loan is paid off.
YES, they purchased a debt contract. The original creditor does not forgive / eliminate a debt by selling it to a collector -- they simply gave-up on collecting a worthwhile settlement from you.
Yes, the debt still stands. It's how debt collectors stay in busniess. When the debt or account is sold, the debt isn't erased, merely transferred. In essence, the original lender has sold the whole contract. * The debtor makes any payment agreement with the collector not the original creditor.
Yes, it is a common practice especially when it relates to credit card debt.
No, ih he sold it he no longer has any right to it. But frequently, they just hire or assign the right to collect it to another, in which case the debt is still owed to them.
Yes, there is no law that says a debtor needs to be notified of any debt being charged off by the lender. The term simply refers to the original lender moving a debt from an open account to inside or outside collections. The debt remains valid and collectible.
Not if the debt was officially discharged in the bankruptcy.
If the lender designates the account as a charge off, the account is still valid and will be referred to inside collections department or an outside collector for further action. If the lender cancels the debt, the debt is no longer valid and the debtor will receive a 1099-C showing the amount that the borrower must claim on his or her tax return as taxable income.
Is not possibile.
When a customer's loan or bill goes into default the company that lent the debtor the money will try to collect the debt. Most debt collectors are from the actual lender or are contractors that have purchased the debt and will try to collect the money from the debtor with interest.
Yes, the lender/creditor can sue the debtor in the state court in the county where the debtor resides for the debt owed regardless of where that debt was incurred. In some cases, the lender/creditor can send the defaulted account to the National Board of Arbitration bypassing the usual court procedure of a lawsuit. The debtor will be notified in advance of any litigation the lender/creditor chooses to take.
This is a misnomer. When an account is sent to debt collections, the collection agency does not typically own it. They are simply acting on the part of the lender or creditor. When judgment is sought on a bad debt, it is the lender who is suing. They are perhaps doing so through the collection agency and the lawyer they have under contract, but it is not the collection agency who is suing.
You list the creditor or collector of the last notice your received. For example if you received a collection notice from an agency for a debt from Capital One you list it in that form. XXX agency for Capital One acct.