If the original creditor and the first assigne does not seek recourse in a court of law on a defaulted account, how can anyone else?How can a defaulted account be assigned multiple times and end up in a court of law seeking a judgment for way more then the original amount, because the original creditor and first assigne failed to seek legal recourse?
This all falls under "rights of ownership" of the debt. The "owner" of a debt has rights and privileges out of that ownership. The OC, and any subsequent purchaser can do as they please (as long as it does not violate any law and/or regulation). If an "owner" chooses to not pursue legal remedy, and instead sell the debt, that is thier choice, and so on. Usually original creditors and perhaps assignees do not feel it is a cost effective move to pursue legal action. As the "price" reduces with each sale of the debt, the cost effectiveness increases. It's all business.
The first part of your question was already answered. The reason why the original amount grows is because, depending upon the type of debt and where the judgment was obtained, the owner (of the debt) can legally accrue interest (and sometimes legal fees) on the unpaid portion of the debt. By not paying the debt, the 'borrower' has tied up that money that belongs to the lender. Because the money is tied up, the lender can not loan it to someone else (and earn interest), nor could they invest it (again, earn interest). And if the debt sits for 20 years before you finally pay it off, the original amount is only (truly) worth a fraction of that, because of (among other things) inflation.
