CA collecting for JDB

[treehugger1]

Some of you might find this of interest or perhaps amusing. A couple of years ago I defaulted on an old MBNA account. Eventually, this was converted to a BoA account. BoA sold the account to one of the JDB's who do business as a "factoring company." The JDB reports to the credit agencies and re-aged the debt. At this point in time, I'm not worried about the credit reports or the JDB's date listed for when the account was opened.

This morning I received a call from a CA. The call was related to a debt from BoA. I let the woman carry on for a while. I kept asking her if she was sure they were collecting on behalf of BoA. She was "certain" that they were. I finally told her to send me a letter within five days and I would study the issue.

Since BoA sold (not assigned) all my unsecured card debt, I decided I had nothing to lose and called BoA. The rep was quite kind and informed me that BoA no longer had any interest in the debt and had no collection claims against the debt.

What I find amusing is that the JDB has hired a CA firm to attempt to collect this debt. I cna only imagine what this $3K is actually worth in the debt collection market place. I'm guessing no more than $.02 on the dollar, max.

The JDB's must be getting hungry!

I looked up the CA's address and checked to see if they are registered in my state. They are. I mailed off a debt verification/validation request. I decided there was no reason to wait for a letter from them. Somehow, I don't believe I'll ever hear from them again. LOL.

Since the JDB never contacted me directly, I have also sent them a DV. I'm interested to see what transpires, if anything. I would guess that if and when this account was ever taken to court, there can't be much left for the JDB. Maybe they will never file a suit.

Has anyone else had a JDB assign purchased debt to some 4th party collection company?

[catleg]

You might check and see if the JDB and the CA are related to each other, chances are they are "close relatives" with a common parent. They might do this (if it was a law firm, I don't know) to layer on additional collection costs onto the bill if they do get lucky and collect something.

[WhatMoney]

My MBNA account was first assigned to Mann-Bracken in 2006. Then MBNA sold the debt to NCO when M-B couldn't reach me. This was 2007. NCO still owns the debt but has assigned it to Northland Group, Asset Management Professionals, and last year, Vision, all JDB's. Each time the settlement offer gets better. Not that I care. I don't think the JDB's are related but they could be. Since its been 5 months since I've heard from the last JDB it's probably been assigned to another new one by now. They better hurry, only 2 more years left before it hits the SOL.

[Bell30656]

My Bank of America debt was sold to a JDB called NEMDEGELT that had a company called Associated Receivables acting as its CA. Mysteriously the two companies have the same address and same owner. Eventually the JDB sued me on the debt in superior court.

There may be some advantage to calling as a CA rather than calling as the JDB but for the life of me, I don't know what it could be.

[GoingDown]

The vast majority (over 85%) of my debts were promptly sold to Junk Debt Buyers a few months after they were charged off by the original creditors.

First the original creditor sent me letters threatening legal action and that they wanted my input before they made a decision about the matter. And this was my last chance to voluntarily repay this debt.

Then after charge off I started getting calls and letters from a lot of different junk debt buyers. Most of them started off calling me themselves. Then after I sent them a Cease and Desist Letter in the mail, they bounced it to a collection agency. I then sent the collection agency a C & D letter, and then about a month or two letter, the Junk Debt Buyer bounced the account to a new collection agency. This process continued for at least 6 or 8 months and I went through a lot of different collection agencies.

At that point, some of them fell silent. Others sent my account to a collection attorney. I sent them a C & D letter, too, and then they fell silent.

Most of them have been sitting there quietly now for years. I think they have paid for a monitoring service that checks my credit report for any good signs of life-- like applying for a new credit card, applying for a mortgage, applying for a job that requires a credit check, etc. Once they see that activity, they will probably spring back to life and start calling me again from new collection agencies.

They may buy the junk debt for pennies on the dollar, but they hope to collect the entire balance and then some, and the collection agency will get a cut of that amount as well.

Even if they settle for a third or a fourth of the original debt, they still made a lot of money because they probably paid 1 to 3% of the original amount or even less.