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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.

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โˆ™ 2005-09-09 12:47:13
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Q: Do you have to pay a debt if another lender has purchased the account?
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Related questions

Can a company that purchased your charged off account from the original lender file a suit against you?

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.

Who should the debtor pay when an account is sold by the original creditor to another lender or collector?

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.

Is it legal for a lender to sell your charged off debt to another lender?

Yes, it is a common practice especially when it relates to credit card debt.

Do you still owe the original creditor if it was purchased by another lender?

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.

Is it legal to charge off a vehicle account when the owner wasn't notified?

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.

When the lender applies a write off to your account and the monthly statements show that same account with a zero balance can they still collect on it?

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.

After a Chapter 7 bankruptcy can a previous lender attach a lien to a new property purchased?

Not if the debt was officially discharged in the bankruptcy.

Can the borrower on a promissory note transfer the debt to another borrow without lender approval?

Is not possibile.

What is your business?

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.

Can a debt incurred in Pennsylvania be collected on in Florida?

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.

When accounts are purchased by another lender which do you list when filing for bankruptcy?

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.

Can debt collection agencies sue in North Carolina?

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.

If you transfer your account balance to another credit card does that action act as a payment to the credit card it was tranfered from?

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.

How many years does it take for a debt to be written off?

There is no set time for a creditor/lender to cancell a debt. Charge offs are generally done 180 days after the account becomes delinquent. A Charge off does not mean the debt is not still owed and collectible.

If a debt is not reaffirmed by a creditor is the debt discharged in a bankruptcy?

The creditor is the lender. The bankrupt is the debtor. The lender never has to re-affirm he wants to get paid back.

Can you purchase home while still being listed on another mortgage?

That is up to your lender and whether it thinks you can take on more debt.

Do collection agencies usually garnish wages?

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.

What is difference between a charged off debt and written off debt?

In most cases there is none. Charge off and written off are terms that indicate the debt is being removed from normal account action and sent to collections. Only when a debt is "forgiven" by the original lender or collector is it considered no longer collectible.

When an old account is sold to another collection agency does the account become new again?

No. The state SOL begins approximately 6 months after the debt is defaulted upon. (Usually the last activity on the account). If any money is paid on the account, the debt is considered to be reaffirmed.

You have a valid debt that was purchased by another collection agency however the original date that the debt was opened was 2003 The new collection agency has it listed as 2005 is this legal?

The date that is of the most importance is the DLA, which is used if it pertains to the state SOL. The opening account date can be disputed and possibly amended, but it will not affect the validity of the debt or prohibit the collection process.

What is the difference between debt service and debt repayment?

The main difference between the two is that when a account being. Debt services means they consolidate your debt and debt repayment means they are asking for repayment through money. You should go for debt services to get out of debt. The meaning of this is that the debt consolidator will get in touch with all your lenders, "pay off" the balances on your behalf and subsequent to this instead of two or more credits, you only be indebted to one lender!

Can the lender freeze a bank account?

Bank accounts can only be "frozen" by a court order. A lender can request a court to take such action if it can be proven that the debt has plans to remove the funds from such accounts. Bank accounts can also be 'frozen' when they are jointly held so the non debtor account holder can provide documents to the court showing the portion of the funds in the account that belong to them and are exempt from a judgment creditor.

How long can after a charged off debt can a credit card debt be collected by another company that has purchased the debt?

Depends on which USA state where you live - Check Debt with Statute of Limitations; and

Who is responsible for student loan debt after your death?

The student's estate is responsible for paying their debt unless there was a co-signer. If there is no estate the lender is out of luck. If there was a co-signer the lender will seek payment from that party.

In Florida if the primary is on disability and can't pay will the bank go after the other signer?

If the account is joint both spouses are liable for the debt and subject to collection actions. If one spouse is a single account holder and the other is only an authorized user, only the account holder is responsible for the debt. This is assuming the question refers to credit card or open account debt, not a morgage, vehicle, or other secured lender. Disability benefits whether SSD or private are not subject to garnishment by creditors in the state of Florida.