Debt Buyers: A Different Kind of Credit Collection
Debt buyers are a different breed of debt collector and do a different type of credit collection. Instead of conducting credit collection on behalf of original creditors, they purchase large portfolios of debt from original creditors who have written off the debt, or they buy portfolios of debt from other buyers of debt who have already tried to collect on the debt.
In 2012, some within the debt collection trade organization ACA International tried to split debt buyers from the mainstream credit collection community. That effort was unsuccessful, but they do have their own trade organization, called DBA International.
Consumers should be aware of the differences between entities that buy debt and other debt collectors doing credit collection. Debt buyers – especially the smaller companies – often run afoul of the Fair Debt Collection Practices Act (FDCPA) by threatening legal action or filing cases against consumers for debt that is past the credit collection statute of limitations. Debt that is past the statute of limitations (also known as time-barred debt) is legally unenforceable. That doesn’t mean, however, that debt buyers won’t still try to engage in credit collection.
What would you like to know about debt buyers?
History of the Debt Buying Industry – The debt buying industry has its roots in the savings and loan scandals of the late 1980s. Learn why debt buying has become such a huge business.
How Debt Portfolios Change Hands – Learn what the Federal Trade Commission discovered about how debt portfolios are packaged for sale to debt buyers.
Information Debt Buyers Receive – Because the debt they buy is often stale, companies that collect old debt often call the wrong people or don’t have correct debt balances. Learn what kinds of consumer information they receive.
Debt Buyers & Time-Barred Debt – They often try to collect debt that is past the statute of limitations. Learn about the ages of debt portfolios that are sold.
Statute of Limitations on Debt Collection – Each state has its own statute of limitations, after which debt collectors can’t take you to court over nonpayment of a debt. Learn about the statute of limitations for your state.
What to Do About Time-Barred Debt – Debt collectors and buyers can trick you into “restarting the clock” on time-barred debt. Learn what to do if you’re being hounded for debt that’s past the statute of limitations.
If you or someone you know is being harassed by a debt buyer’s credit collection efforts, complete our online form or call 475-277-2200. Lemberg Law’s legal team will evaluate your case at no cost to you, and will help you get the justice you deserve.