Does anyone know if the Fair Debt Collection Practices Act applies to debt scavengers who purchase debts and own them outright?
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Does anyone know if the Fair Debt Collection Practices Act applies to debt scavengers who purchase debts and own them outright?
yes, it does
yes, JDB's get to stand in the original creditors place for suing you over a debt, but they are still bound by the FDCPA.
While the Arbuckle letter is not binding, the FTC does view a junk debt buyer/scavenger as a third party collector. They are not the initial extenders of credit, but a third party who purchases portfolios of debt on which to collect.
http://www.expertlaw.com/forums/showthread.php?t=35263
http://www.ftc.gov/os/statutes/fdcpa...s/arbuckle.htm
Quote:
Quoting Mr. Clarke W. Brinckerhoff, Attorney, Federal Trade Commission