Debt Buyers — why they must prove they own the debt — an illustration of Apple v Samsung
A major role in my work is dealing with debt collectors who have sued Alabama consumers. I’m always thinking of different illustrations to use in court to help the judge and jury on why we don’t owe the debt to this collector, even if we do owe money to someone.
For example, we may owe money to Synchrony Bank but not to Portfolio Recovery Associates who claims to own the debt.
Here’s an illustration:
Imagine that I filed a lawsuit against Samsung and claimed that they violated many patents for the iPhone.
If you remember a few years back, Apple and Samsung kept suing each other; however, I’m filing this lawsuit today.
After Samsung pitched a fit, the judge will say, “Okay John Watts I hear that you think Samsung violated patents… But you aren’t Apple.”
How would it go over if I said:
Yes I know. But let’s focus on the violations of the law by Samsung. Let’s not get caught up in technicalities on who actually owns the debt.
The judge would say, “We’ll get to that but only after you prove you own these patents. You are not Apple.”
What if I said:
Trust me jugdge. I would not have brought this case if I did not own the patents. Besides that, I can’t show you where I bought the patents. That’s top secret. I don’t want Samsung all up in my business like that. Just take my word for it that I own the patents.
The judge would throw me (and my lawsuit) out of court!
If I really owned the patents, I should show that in court, right?
The same thing with debt buyers — they must prove they own the debt.
They come into court claiming to own an old debt of yours.
They don’t like this — and when they do attempt to prove it they only give a “bill of sale” or an “affidavit” instead of showing the actual proof which is the actual purchase agreement where they supposedly bought the debt. (And if they bought from a debt buyer they have to trace it all the way back to the original creditor).
We don’t see them doing this in court — a variety of reasons why. Mainly as these agreements often say that the debt buyer cannot rely on the records of the creditor as being accurate!
Well, that’s a bit (HUGE) problem for them as they want to say all the records they have are 100% accurate. Can’t do that when the contract says the records are not accurate. Kind of like buying something “as is” — you take your chances.
What do you do if you are sued in Alabama by a debt buyer?
Find out your options and then take action.
Here is an article/video going over your five options — https://www.alabamaconsumer.com/2015/08/debt-collector-sue-you-find-out-your-5-options-now/
And here is a long series of articles where we answer over 150 frequently asked questions about being sued in Alabama — https://www.alabamaconsumer.com/2017/12/alabama-debt-collection-lawsuits-questions-part-one-lawsuit-filed/
Here is the full video — https://youtu.be/YDPrXTxqmew
Let us know if we can help you — call us at 205-879-2447 or fill out our contact form thanks!