Re: Accounts sold to CA's
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Posted by Mike
(172.201.73.216) on July 12, 2003 at 10:52:55:
In Reply to: Re: Accounts sold to CA's posted by Why Chat on July 11, 2003 at 18:18:20:
I understand what you're saying about the OC's and 1099c's and the issue about a CA buying an account for cents on the dollar, but carrying
that full balance on their books and the issue that is created by settling with them, leaving a remaining portion of that asset on their books. But, you lost me on the rest. I don't see how what they do or don't do re: your credit report and whether they delete the entry or report it as settled has any bearing on what they do on their books from an accounting standpoint. That would seem to imply that there's some IRS requirement that what they do or don't report to a credit bureau is what is supposed to appear on their corporate tax returns. Secondly, I'm not an accountant but one would have to believe there is a way companies can write down the value of their assets in accordance with IRS regulations without taking a tax loss on it or having to dispose of it by selling it or transferring it out to some other company. It seems that's in the news often these days, with companies taking massive writedowns of their bloated assets. Third, while it may be true that you can't legally prevent a company from disposing of their assets, I don't see how they aren't waiving
those rights by putting in writing, up front,
what they are agreeing to do regarding your account. In other words, if they are the legal owners of the account today, having purchased it from the OC, and as part of your agreement with the CA, both you AND they agree, in writing, that
your payment to them will settle the balance in full, how they can legally sell the remaining amount, presumably collect money for that, and put the consumer in the position of now having to deal with another CA who's trying to collect on that deficiency balance. That would seem to me to be fraud on the part of the original CA, (in presenting that account to the next CA as collectible unless it's just presented as a mailing list) and a violation of the original CA's written agreement with the consumer. To summarize it all I don't see how
>if a CA is now the legal owner of an account, having purchased it from the OC Why they cannot:
>Agree in writing to a settlement with both you and them signing the document That calls for:
>their account to be deleted from your credit report upon payment of the settlement
>for them, as the legal present owners of the account to consider this account paid in full
>and for them to agree to not assign, sell..or transfer the remaining portion of this account.(perhaps it could be added "without their clearly identifying to any future assignee that this account has been paid or settled in full") And how doing all that would not make it a legally binding agreement on the part of both the consumer and the CA. I realize that thru mixup's..screwup's or whatever...that remaining account might make it
into the system later on, and some unscrupulous CA might try to collect on it...but that really isn't my concern here. My concern would be that I had a legally binding agreement with the original CA who was the lawful owner that called for my dealings with them to have fully satisfied this account. If I can work out an amicable agreement with the current CA's who now own a couple of my accounts, I'm willing to do so. These are large balance accounts that they are and will pursue thru legal action, resulting in judgements and it's worth it to me up to a certain point to
attempt to put an end to this. I just want to be sure that if i'm doing that however, that legally, I AM settling those accounts and legally, no future CA has the right to collect on that account...(even though they may try to do so). If this goes back to some fair trade law which says, under no circumstances and despite any written agreements..you cannot prevent a CA from selling or disposing of an asset and legally they can still do whatever they want DESPITE what they may have put in writing, then i would find it hard to believe that such a law exists or that it hasn't been challenged in a court of law. I'm not saying that's not the case but I'd be interested in knowing where it states any such thing and primarily, what kind of an agreement could be drawn up that would make it a legally binding agreement. Thanks for any responses to this post.
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