Additional clarification

Posted by Drew (24.59.27.46) on October 21, 2003 at 14:31:57:

In Reply to: Re: Asset Acceptance as creditor??? posted by Drew on October 21, 2003 at 14:17:26:

They are wrong. Asset is a debt collector. For Federal Law purposes, a debt collector is any person who attempts to collect on charged off debts whether they buy the debt right out.

The original creditor is the creditor whom you originally made a contract with, the one to whom you applied with. It makes no difference how many times a debt is sold, the original creditor is always the person who you signed a contract with. Any person who buys the debt after the original contract is a third party and is subject to FDCP rules. Yes, even if a bank buys out your good account from another bank, they are third party and are not the original creditor.

Any company or lawyer that buys or attempts to collect on an account that has been charged off is a debt collector.

You were misinformed.

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If a company purchases an account that is current and is in good standing from another creditor, the company then is considered a creditor to the consumer, even though they are also a third party. They must honor the original terms and agreements that the consumer signed with the original creditor. They are also subject to the FDCP rules in that they are a third party.

However, if a company purchases an account that has been charged off, they are debt collectors and are not considered creditors. They must then be licensed in the appropriate state to collect from the consumer and must follow all the FDCP and the state guidelines with regards to collecting.

Just felt I needed to clarify that a bit.

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