Debt Buyers suing in the name of the creditor, legal?

by Bill
(Osage, Iowa)

I'm wondering why a debt collector, who buys the defaulted (charged off) debt from the creditor for pennies on the dollar, can say he is collecting this debt for the creditor? If he bought this at a bargain price, he should sue you in his name over a debt he bought. If a creditor is listed on the summons to apparent in court, isn't that fraud? The collector is NOT the creditor and he does not represent the creditor.

I can understand if a collector sues me, it will be him vs me, but when he tells the court that "his client", the creditor, isn't that a lie?

Thank you

Comments for Debt Buyers suing in the name of the creditor, legal?

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Nov 06, 2011
by: Anonymous

If the debt collector *purchased* the debt from the creditor, then they own the debt and are collecting for no one but themselves.

If the debt collector was *contracted* to collect the debt, then the debt still belongs to the creditor and the collector is collecting for them.

You should consult with an attorney to see what your rights and options are.

Jan 07, 2012
You missed the point
by: Anonymous

I'm asking if a junk debt buyer owns the debt and is NOT collecting on behalf of the creditor, then why isn't his name on the request at the courthouse??

I fully understand if someone is calling THAT WORKS for your creditor, then you are still dealing with the creditor.

Once the debt is charged off and sold for pennies on the dollar, the person/company/group, whoever buys it SHOULD list them as the debt owner and not use the creditor's name when filing court papers.

Here is my question. How can a junk debt buyer, who fully OWNS the charged off debt list the creditor as "his client" when in fact there is no client. Isn't this FRAUD?

Reply from

You are correct in pointing out that these junk debt buyers are not always accurate when they file lawsuits against consumers over old debts. In fact, if consumers actually call them on these lawsuits, they may get them dismissed. However, we typically recommend that the consumer at least talk with a consumer law attorney as it can be difficult to know how to fight back on your own.

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