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Don't mean to contradict


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Posted by legal beagle (151.205.67.141) on January 21, 2003 at 09:21:10:

In Reply to: Re: Credit Card Debt posted by LadynRed on January 20, 2003 at 18:22:15:

But for the most part a CA can sue in its own name in probably all jurisdictions. It depends on how they acquired the debt though.

If a creditor assigns the debt to a CA, then the CA gains legal title to the debt and can sue on the debt. The creditor retains equitable title. Its a lot like the CA is a trustee of a trust, the creditor is the beneficiary of the trust, and the debt is the trust property. If this is the case, then the CA can, and must, sue in its own name, although it can in some states also name the original creditor.

Now, if the creditor simply hires a CA to collect a debt, and if they agree that the CA gets to keep a certain percentage of any amounts recovered, then thats not the same as an assignment. In this case, then the suit would have to be brought by the original creditor, as the CA does not have legal title or any other ownership interest in the debt and cannot then sue on it.

So, it will depend on how the CA acquired the debt whether they can sue in their own name or not. It would have to be spelled out in any complaint from the get-go how they got involved.




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