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[ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] Re: credit card judgments Posted by Travis-CA on March 31, 2004 at 10:27 PM In Reply to: credit card judgments posted by jenv on March 30, 2004 at 4:14 AM : I was thinking about buying one that I am certain is about to get a foreclosure notice from the 1st. It was created pursuant to a divorce (order to pay marital debt). Are CC companies generally willing to deal? Does the NOD make them more motivated to deal (might get wiped out) or less motivated (they might get paid, since as things are right now they can't foreclose due to homestead protection)? Jenv, I think you may have trouble working directly with the creditor who is a large corporation that regularly deals with debt because they generally have certain procedures they follow to recover bad debt. Once they retain outside representation to collect the debt it creates an agency relationship wherein the creditor is liable for the actions of the collection company, including violations of the strict Federal and State collection practice acts, for this reason I think they are very selective on who they retain to represent them, it is usually a law firm specializing in collections. Even though selling a judgment does not create an agency relationship and the creditor would not be liable for the assignee’s actions, I think they have the impression that dealing with anyone other than their approved collection companies may cause potential liability issues. Also if they have taken the debt to court and been awarded a judgment, chances are they were represented by a collection company or an attorney who gets paid on a contingent basis of the collected debt, so in addition to having the creditor sign an assignment of judgment, you would also need their attorney to sign a substitution of attorney for that case. However, I have had success with purchasing judgments through the attorney or collection company representing the creditor, but they are usually unwilling to sell for less than 50% of the present balance. Travis Follow Ups: Post a Followup: Name : E-Mail : Subject : Comments: : : I was thinking about buying one that I am certain is about to get a foreclosure notice from the 1st. It was created pursuant to a divorce (order to pay marital debt). Are CC companies generally willing to deal? Does the NOD make them more motivated to deal (might get wiped out) or less motivated (they might get paid, since as things are right now they can't foreclose due to homestead protection)? : Jenv, : : I think you may have trouble working directly with the creditor who is a large corporation that regularly deals with debt because they generally have certain procedures they follow to recover bad debt. Once they retain outside representation to collect the debt it creates an agency relationship wherein the creditor is liable for the actions of the collection company, including violations of the strict Federal and State collection practice acts, for this reason I think they are very selective on who they retain to represent them, it is usually a law firm specializing in collections. Even though selling a judgment does not create an agency relationship and the creditor would not be liable for the assignee’s actions, I think they have the impression that dealing with anyone other than their approved collection companies may cause potential liability issues. Also if they have taken the debt to court and been awarded a judgment, chances are they were represented by a collection company or an attorney who gets paid on a contingent basis of the collected debt, so in addition to having the creditor sign an assignment of judgment, you would also need their attorney to sign a substitution of attorney for that case. : However, I have had success with purchasing judgments through the attorney or collection company representing the creditor, but they are usually unwilling to sell for less than 50% of the present balance. : : Travis Optional Link URL: Link Title: Optional Image URL: [ Follow Ups ] [ Post Followup ] [ The Forum Board ] [ FAQ ] WWWAdmin 2.0a © 1997 Matt Wright and DBasics Software Company, All Rights Reserved

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