Debt validation for a series of debt collectors
A viewer recently asked about a debt that has not been validated being sold to a new company. If the debt has not been validated, is it now “bad debt”?
Auto deficiency occurs when you still owe $15,000 on a car and then that car is repossessed and sold for $5,000. Now, you get sued for the $10,000 deficiency.
A cease and desist letter is something you send to a debt collector telling them that you wish to have no more contact with them. It may also state that you refuse to pay them.
I’ll answer this based on Alabama, since that’s where I practice.
This recent case from the Third Circuit Court of Appeals is very important to understanding the FDCPA (Fair Debt Collection Practices Act).
The full citation to the case is: Riccio v Sentry Credit, Inc. (3rd Cir. March 30, 2020). And the Google Scholar link is here: https://scholar.google.com/scholar_case?case=18158055043397526690&q=%22fair+debt+collection+practices+act%22&hl=en&scisbd=2&as_sdt=3,44
(If you are not familiar with Google Scholar — check out this video — Google Scholar is a fantastic free resource).
Often we hear consumers say that they thought it was illegal to buy debt, or that it’s illegal for the collector who bought your debt to sue you.
I had a great conversation with an attorney the other day, and I wanted to share something that we talked about.
In this article we want to chat about this comment: