Can a company transfer debt to another company?

Liabilities cannot be assigned from the original debtor to another so as to free the original debtor from the obligations. The obligations may be delegated or sub-contracted, but normally the only way to transfer the obligations under a contract is by novation.

Can a law firm be a debt collector?

Law firms may be able to get around the FDCPA. A law firm is only bound by the FDCPA if they can be said to be collecting debts on a “regular basis.” The definition of regular is one big grey area. Many lawyers will continue to abide by it whether they think they have to or not, just as a matter of prudence.

Are debts assignable?

Debt assignment is a transfer of debt, and all the associated rights and obligations, from a creditor to a third party (often a debt collector). The debtor must be notified when a debt is assigned so they know who to make payments to and where to send them.

What happens when debt is assigned to a collection law firm?

Once your debt is assigned to a collection law firm, you will typically receive a letter requesting payment of your debt. You have not been sued — yet. Generally, you are given 30 days to respond and dispute the debt or point out inaccuracies.

What happens when debt is sold to another company?

Many people ask, “If a debt is sold to another company do I have to pay?” Once your debt is transferred, you owe the money to the current company rather than the original creditor. However, the new collector must still adhere to all the regular debt collection laws.

How to contact a debt settlement law firm?

The first step is to call for your FREE CONSULTATION. Many debt settlement companies and other settlement law firms want to hold your money in a trust account, escrow account, or somewhere else they will have access to or control over your money. They do this to control your funds, thus, controlling you as their client.

Can a collection law firm sue a bank?

In other words, the collection law firm may not have had a solid case if it sued you. But Office of the Comptroller of the Currency’s (OCC) guidance to banks that sell debt now requires banks to pass detailed account information on to the purchaser.

Once your debt is assigned to a collection law firm, you will typically receive a letter requesting payment of your debt. You have not been sued — yet. Generally, you are given 30 days to respond and dispute the debt or point out inaccuracies.

Many people ask, “If a debt is sold to another company do I have to pay?” Once your debt is transferred, you owe the money to the current company rather than the original creditor. However, the new collector must still adhere to all the regular debt collection laws.

What can the FTC do about debt collection?

If the FTC finds the complaint to be valid, the agency can ban parties from participating in debt collection. The FTC keeps an up-to-date list of all prohibited parties. A collection account can significantly affect credit score.

How does a creditor pass on a debt to a DCA?

A creditor can pass the debtor’s default profile on to a DCA (debt collection agency) after writing a letter informing the debtor. The DCA can then legally initiate a collection process on past-due debts. However, there are laws that block creditors from charging the debtor the DCA’s collection fee.