THE SELL OR TRANSFER OF A DEBT DOES NOT DEPRIVE YOU OF YOUR LEGAL RIGHTS AND COLLECTORS ARE NOT ALLOWED TO TELL YOU THAT IT WILL.
Has a debt collector or creditor threatened to sell a debt you allegedly owe and told you that the sale of the debt would deprive you of any legal defense or claim?
Creditors and debt collectors are not allowed to use deceptive means to collect on a debt, and telling you that you will lose any of your defenses to payment of the debt is deceptive and a violation of the law. Debt collectors are also prohibited from telling you that you will lose your rights under the Fair Debt Collection Practices Act (FDCPA) once a debt is sold or transferred, as this is not the case.
Regardless of how many times a debt is sold or transferred, a consumer retains the same legal defenses and protections offered by the FDCPA and the Rosenthal Fair Debt Collection Practices Act (RFDCPA) that they would have if the debt were never sold or transferred.
Some of these defenses include:
- The debt has been paid
- The amount of time allowed by law to collect on the debt has expired
- The debt has been discharged in bankruptcy
- The debt does not belong to you
- The amount of the claimed debt is incorrect
Protections offered by the two Acts include:
- The right to receive verification of the debt
- The right to not be abused, harassed, or annoyed by a collector
- The right to dispute the debt and stop collection calls
These lists are not exhaustive and do not include all of your legal claims, defenses or protections against a debt collector.
If a debt collector or creditor has threatened to sell a debt you allegedly owe and told you that the sale of the debt would deprive you of any legal defense or claim, please contact us for a free, no obligation case review at 1-800-219-3577.