AboutChris Ebert Expertise I can answer questions for Texas and California residents concerning issues that involve creditor and debtor rights. Specifically, I can answer questions concerning: FDCPA, FACTA, FCRA, and Texas / California state collections violations.
Experience For the last 6 years I have worked as a Sr. Paralegal in a law firm (http://www.henleycreditlaw.com) that defends debtors against their creditors. I have reviewed thousands of credit reports and under the supervision of our attorney helped hundreds of client resolve their credit issues.
Organizations Henley & Henley, PC
Education/Credentials BBA University of Texas at Austin
Question A voice mail was left on my phone stating a case number and 800 number for me to call. I called back the number and it was a third party collection agency. The lady that I spoke to, told me that her employer was a lawyer who bought debt from companies and that according to their collection and interest rates, I owed over $2000 on a 2 year old $300 debt!! Back story, this was a Internet payday loan that i took out. I paid the extension fee a couple of times and but was unable to pay it completely off. Now I have spoken with agents of the original company and fully acknowledge the debt. The company took the proper collection measures with me and I had contacted them again in January of this year when I began my credit correction measures. This collection "company" is based in New York and I live in Texas. I guess my short question is, can collectors really buy your debt and charge ridiculous fees and interest like that? Is that really legal? Help!
Also let me add that after consulting with a friend of mine who is a finance manager he told me that it sounded fishy and to ask for a letter stating my debt. So I called the number back and spoke to the same rude lady and she changed her tune completely. The second time we spoke I ask her for their mailing address so I could send a certified letter and request information on my case. She literally played dumb like she didn't know what i meant. after fussing for close to ten minutes she ask for my e-mail and emailed me a letter with a completely different figure than the one that she threatened me with an hour earlier. The e-mail said I owed her company $975.20 on a $300 debt. The original debt is on my credit report as it has been for close to two years. I just can't accept that someone can do this.
Answer Crystal,
You are experiencing a classic collection situation. Yes, your unpaid debts can be sold to another entity. Depending on the contract you signed, they may be able to extend the interest rate and some penalties.
To take care of this, here is what you will want to do:
2) You will also want to ask in writing for an Affidavit of Ownership or Affidavit of Purchase of the debt by the attorney. With this document, they are saying under penalty of perjury that they own the debt and they are the ones to settle with.
