Consumer Law

A Warning To Debt Buyers From Collection Attorney

By M. Stan Herring

We always enjoy (if not always agree with) the posts on Michigan Collection Law Blog by Gary Nitzkin. He has a fascinating post on his advice to debt buyers that you might find interesting.

Here is a short excerpt and we recommend you read the rest of this good article:

These debts are generally fraught with lots of problems. If you are contemplating buying debt or if you are being sued on a credit card debt from someone other than the original creditor, read on...I am about to save you a lot of grief. Here are the usual problems with purchased debt:

Our primary difference with Gary's post is that in Alabama the debt buyers sometimes do produce the original documents between the creditor and the consumer. This may show that you "owe" the debt but the debt buyers have not and will not, in our experience, produce the purchase agreement where the debt buyer supposedly bought the debt from the creditor. This is the "prove they own the debt" argument we made in this post. When a debt buyer dismisses the case with prejudice, you have the option in Alabama to potentially sue the debt buyer for not correcting your credit report as we posted here.

Full post as published by Alabama Consumer Blog on July 30, 2007 (boomark / email).