Consumers generally have no notice and do not know that a debt has been sold until checking their credit report or until a collection agency calls to collect a debt.
Being notified of a debt being sold, would at least allow the consumer to verify who is actually the owner of a debt. (I once paid a debt to a collection agency, only to find that I had paid one of 3 collection agencies who claimed to own the debt).
With regards to costs, most consumers and most debt buyers are unable to detail how a 2200.00 debt becomes a 7000.00+ debt. And I found that very few even knew the original creditor's name, yet still attempted to collect this debt.
The new rule should at minimum state the Original Creditor's name, and that Debt Buyer has purchased the right to collect the debt. This would allow the consumer to verify that a debt buyer has the right to collect the debt.
This is precisely what lead to my filing bankruptcy. Debt buying and selling, made a debt that was 10 years old, reappear on my credit report.
Each time I mentioned that the debt was time-barred. I was informed that the debt had been bought, and that the "clock" had been restarted.
musicman82
1
Consumers generally have no notice and do not know that a debt has been sold until checking their credit report or until a collection agency calls to collect a debt. Being notified of a debt being sold, would at least allow the consumer to verify who is actually the owner of a debt. (I once paid a debt to a collection agency, only to find that I had paid one of 3 collection agencies who claimed to own the debt). With regards to costs, most consumers and most debt buyers are unable to detail how a 2200.00 debt becomes a 7000.00+ debt. And I found that very few even knew the original creditor's name, yet still attempted to collect this debt. The new rule should at minimum state the Original Creditor's name, and that Debt Buyer has purchased the right to collect the debt. This would allow the consumer to verify that a debt buyer has the right to collect the debt.
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musicman82
2
This is precisely what lead to my filing bankruptcy. Debt buying and selling, made a debt that was 10 years old, reappear on my credit report. Each time I mentioned that the debt was time-barred. I was informed that the debt had been bought, and that the "clock" had been restarted.
View this comment in the discussion thread