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  1. #1
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    Oct 2010
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    Default How to Determine if a Debt Has Been Assigned or Sold

    My question involves collection proceedings in the State of: Georgia

    I have received this week a summons for a lawsuit on a HELOC that was part of a home I had that went into foreclosure in 2008.

    The lawsuit lists as the Plaintiff the name of the original creditor (Chase) and the lawyer works (or is contracted by) a large junk debt buyer.

    I am under the impression that many cases are filed by junk debt buyers listing the original creditor as the plaintiff - when in actuality they have purchased the debt and now own it. I guess this as done as a loophole to avoid the chances of losing the chain of custody.


    In my response, what exactly do I need to ask for to ensure that the JDB is simply acting as an attorney and has not purchased the debt? I figure calling them is NOT the answer!


    I also noted that the amount that the Complaint is seeking is not the same as the amount that has been charged off per my credit report. (It is off by about $1,000...and $5,000 if you include "late charges and interest." Adding in legal fees the numbers are off by around $10,000.)

    Attached to the Summons/Complaint was a copy of the signed HELOC Agreement and a copy of the HELOC Credit Security Deed. Nothing else was included in what the Sheriff gave to me.

    In filing my answer, what AFFIRMATIVE DEFENSES should I list (with an asterisk next to any no-brainer ones.)


    What should I be seeking in my REQUEST FOR PRODUCTION (documents)?

    Thanks to all who help!

  2. #2
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    Jan 2006
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    Default Re: How to Make 100% Sure a Debt Has Been Assigned or Sold

    well, you need to determine if the debt is owned by the original creditor. Since that is who is listed as plaintiff, to make any argument they are not the proper plaintiff, you would have to have something to show they had sold the debt and had not repurchased the debt. I think you are at a real loss unless somewhere along the line your credit report showed some transfer of ownership or you had been contacted by some other CA claiming to own the debt.

    I am under the impression that many cases are filed by junk debt buyers listing the original creditor as the plaintiff - when in actuality they have purchased the debt and now own it. I guess this as done as a loophole to avoid the chances of losing the chain of custody.
    well, that would be all sorts of illegal so I suspect it isn't as common as you presume.

    Since you are already being sued, I don't see any harm in contacting Chase to confirm they still own the debt. Obviously, if they do not own the debt, the suit is easily defeated by arguing the plaintiff has no standing to sue as they no longer own the debt.

    I do not understand your figures though. If it is not what you believe it should be, demand an accurate accounting of the account to show how the charges were accrued. A credit report is not considered to be legally dependable for items such as the exact amount of the account as it changes with the accrual of interest and fees and is delayed in reporting any credits as well.

  3. #3
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    Default Re: How to Make 100% Sure a Debt Has Been Assigned or Sold

    Quote Quoting jk
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    well, you need to determine if the debt is owned by the original creditor. Since that is who is listed as plaintiff, to make any argument they are not the proper plaintiff, you would have to have something to show they had sold the debt and had not repurchased the debt. I think you are at a real loss unless somewhere along the line your credit report showed some transfer of ownership or you had been contacted by some other CA claiming to own the debt.

    well, that would be all sorts of illegal so I suspect it isn't as common as you presume.

    Since you are already being sued, I don't see any harm in contacting Chase to confirm they still own the debt. Obviously, if they do not own the debt, the suit is easily defeated by arguing the plaintiff has no standing to sue as they no longer own the debt.

    I do not understand your figures though. If it is not what you believe it should be, demand an accurate accounting of the account to show how the charges were accrued. A credit report is not considered to be legally dependable for items such as the exact amount of the account as it changes with the accrual of interest and fees and is delayed in reporting any credits as well.
    Can/should I file in a motion for the JDB to produce the document showing the NATURE of the OC and the JDB's relationship concerning this claim?

    If they can produce a document showing the debt was assigned - then this angle is dead on arrival. However, if they refuse to show an "assignment contract" - then maybe I can push them to admit they actually purchased the debt?!?!

    How exactly would one word the request for an accurate accounting of the principal and interest (supposedly) owed?

  4. #4
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    Default Re: How to Make 100% Sure a Debt Has Been Assigned or Sold

    what JDB? Where have you seen some JDB's name in this entire issue? You state there is an attorney that represents a JDB but the plaintiff is the OC. A lawyer can have many clients and often times, when people think a debt has been sold, it actually hasn't. There are many collection agencies that do not purchase debts but are simply contracted to try to collect debts others own.

  5. #5
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    Default Re: How to Make 100% Sure a Debt Has Been Assigned or Sold

    Quote Quoting jk
    View Post
    what JDB? Where have you seen some JDB's name in this entire issue? You state there is an attorney that represents a JDB but the plaintiff is the OC. A lawyer can have many clients and often times, when people think a debt has been sold, it actually hasn't. There are many collection agencies that do not purchase debts but are simply contracted to try to collect debts others own.
    The law firm is a well-known JDB.

    To your point, they could be simply representing the OC as an attorney.

    To my point, they could be the buyer of the debt.

    My question in my post was simply asking how one can make 100% certain that the JDB/attorney is operating as an attorney for the OC or as a JDB for themselves.

    I don't see the harm in finding out for certain which one this JDB is on my case - especially given the flawed practices of JDBs.

    Are you implying I should just take the JDBs word for it? If not - what would you do in my shoes to make 100% certain of their standing per my debt?

  6. #6
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    Jan 2006
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    Default Re: How to Make 100% Sure a Debt Has Been Assigned or Sold

    =gmanatl;467277]
    To my point, they could be the buyer of the debt.
    that's a stretch given nothing you have presented even suggests that though.

    My question in my post was simply asking how one can make 100% certain that the JDB/attorney is operating as an attorney for the OC or as a JDB for themselves.
    ask the OC. Since there is no claim of ownership, or apparently ever has been, by the JDB, you won't get anywhere asking them to prove a negative.



    Are you implying I should just take the JDBs word for it? If not - what would you do in my shoes to make 100% certain of their standing per my debt?
    I would call chase and ask them if the sold the debt to JDB or if they still own it.

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