Debt buyer trial: The importance of reading all the documents closely
I wanted to share something with you that is true of any trial or litigation, but is especially important when you are dealing with a debt buyer (Midland Funding, LVNV, Portfolio Recovery, etc.) that has sued you.
When you are sued by a debt buyer, focus on the documentation that they give you.
Read it closely to see what it says.
Sometimes they don’t give you any documentation.
But if they do give you documentation, look at it very closely.
What are we looking for?
We are looking for discrepancies, things that just don’t make sense.
Here’s an example:
A credit card company, such as Capital One, says it sold the account to another company.
Then that company sold it, and then the next company sold it and so on.
But then on the same day, the credit card company says “We sold the receivable.”
What is the difference between an account and a receivable?
This is a great argument to present to the judge.
This is just one reason why you need the actual purchase agreement – it contains definitions for accounts and receivables and then it splits them up.
Here’s another example:
The sale of the account was on a particular date and the sale of the receivable was on the exact same day.
The account said, “The account has been sold after the charge off.”
This makes sense. The account was charged off and then it was sold.
But the receivable says, “The receivable was sold before the charge off.”
But these happened on the same date.
So, although this was sold on the same day, they say it is after and before the charge off.
Well, which one is it?
It can’t be both.
This is clearly inaccurate.
Look for these details
Did everybody sign these purchase agreements, bills of sale, or whatever they produced to you?
Do the dates match up?
What inconsistencies are in the documents?
It can really help your case to take the information and tear it apart.
Whether you write it out on paper, or you use a spreadsheet, or whatever method works best for you.
Make a timeline of what happened.
Take that timeline and compare it to the information provided by the debt buyer.
A lot of times, you will see that there is a problem.
We hope this is helpful to you!
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