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Posted in Credit Cards
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Question By
mongo999

6 Contributions
13 People Helped
What is my obligation to a 3rd party when I have no contract with them?
As we all know, debt 'paper' is bought, sold and traded by the companies *you* did business with, to many different kinds of companies, from collection agencies to factoring companies and other 3rd party creditors.

I understand that a contract exists between me and the 1st party, but what obligation do I have at all to these ever-changing array of 3rd parties? I have never heard of them, have no written contract with them and never received any benefit from them, yet they double-report the original debt, change the drop-off dates and even show long-closed accounts as being currently active and in arrears.

I am in MA. What can I do to protect myself?

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1 Contribution
45 People Helped

SUE.

Helpful to 45 out of 50 people

Sue the collection company that you paid for selling a paid debt. You don't HAVE to pay it. But they HAVE to prove its yours or validate the debt. Don't get suckered into debt collectors being bullies.  I created a facebook group "Your Credit Matters" Learn to dispute everything and share info with others who can help you to manage your credit yourself!

1 Contribution
49 People Helped

Bull****..

Helpful to 49 out of 62 people

Dispute the charges and write "NO CONTRACT" and they will be removed from your credit.

Reply by
amberkaye81

1 Contribution
49 People Helped
Helpful to 49 out of 73 people

This is not true!

https://www.snopes.com/paying-sold-debt/

Reply by
Joan71

1 Contribution
30 People Helped
Helpful to 30 out of 38 people

i did just that and i just received a letter from transunion stating that the debt was validated. So its not that easy to have it removed. They are a 3rd party debt collector and not the original company i signed a contract with. But that doesnt matter apparently because Trans union says it stays on my report since it was validated by the collection agencies.

Reply by
PJEnglish

1 Contribution
5 People Helped
Helpful to 5 out of 5 people

I have done this and some of the collections were deleted and some came back saying the Debt was verified. So it does work but not in all senerios. 

1 Contribution
17 People Helped

Third party

Helpful to 17 out of 23 people

So will this remove the debt completely from your report even though you technically own the original lender? 

2 Contributions
5 People Helped

Garnish wages

Helpful to 5 out of 7 people

Can a 3rd party garnish my wages with the original court order

1 Contribution
6 People Helped

3rd party creditors

Helpful to 6 out of 9 people

What is the statute of limitations? And is that with the original debt or every time they sell it is there a new statute of limitations?

Reply by
lump10

1 Contribution
0 People Helped
Helpful to 0 out of 2 people

seven years and the time start with the original company.

3 Contributions
1 Person Helped

It depends on the type of debt and where it was incurred. Seven years is fairly standard. Medical bills that countdown starts from the date of service or the last payment mada. In Kentucky its 15 years for written contract, which may include credit cards or other bills because you sign for them (hence, contract).

1 Contribution
6 People Helped

Helpful to 6 out of 7 people

How do I dispute charges with these collectors 

1 Contribution
7 People Helped

What option do I choose

Helpful to 7 out of 12 people

Hello, when I try to dispute a account it gives me allot of options to choose but no where does it say canceled contract. Can you please help me figure this out?

Top Contributor
12 Contributions
35 People Helped

Helpful to 29 out of 34 people

Under the Fair Debt Collection Practices Act (FDCPA) (a third party debt collection agency is required in the first written communication with the following information: 1) the amount owed; 2) the name of the creditor who the debt is owed to; 3) that unless the debtor disputes the validity of the debt within 30 days of receipt of the letter, it will be assumed the debt is valid; 4) a statement that if the consumer notified disputes the debt in writing within the 30 day period mentioned above, the collection agency is required to obtain verification of the debt or a copy of a judgment against the consumer and mail a copy to the debtor. Once a debt is disputed a debt collector is required to stop their collection efforts until the debt is in fact validated.

The best time to use debt validation letters is when the debt has been bought or sold. Oftentimes under these circumstances the creditors do not have any records of the debt because it was bought in a large portfolio of other debts.

But it's funny because when the debt is bought out you never receive that initial letter =(

Top Contributor
434 Contributions
150 People Helped

Helpful to 7 out of 9 people

On the other hand if it has been way less than the  statue of limitations, consider telling these collection aggencies (without admitting to the debt) that you will settle the debt at some portion if they delte the record in al three credit bureaus. Make sure you get that in writing before you pay anything.

Having said that, your debt agreement had a clause that allowed the debt to be sold. So for your debt to be sold, your consent is not required.

Reply by
mhykle

1 Contribution
9 People Helped
Helpful to 9 out of 12 people

Concerning my original debt 'agreement'...
You mean, like contract?
Agreement, Contract, etc. - doesn't that original item require a genuine signature to be binding, or is a mere 'electronic signature' valid.?

Reply by
FaeryMoonMist

1 Contribution
1 Person Helped
Helpful to 1 out of 1 people

Never Talk To a collection agency acting like your willing to settle that is the same as claiming debt.

3 Contributions
1 Person Helped
Helpful to 1 out of 2 people

It doesnt matter if you acknowledge the debt or not, they have your signature, you owe it, you know you owe it.

Top Contributor
10 Contributions
8 People Helped

Helpful to 6 out of 9 people

Once again, if he is talking about cc debt.........and the satute of limitations for his state has lapsed....DO NOT admit that you owe this debt to a 3rd party that is trying to get it from you all over again.  If you do, you will reset the money that you owed the first lender to the 3rd party.  A nightmare.

They have to PROVE you owe this debt.  And, IF you admit it to the 3rd party, that is their proof.

 You can work with the credit agencies to get the double recordings adjusted on your own.  Just do it.

Reply by
mongo999

6 Contributions
13 People Helped
Helpful to 6 out of 6 people

Thanks. That is what I thought.  The way it looks is as if there are two debts.  Also, I have no business relationship with this other party and the original lender has never instructed me not to pay them.

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