Debt returned to Original Creditor

Discussion in 'Credit Talk' started by irish, Aug 23, 2003.

  1. irish

    irish Active Member

    A friend of mine recently received a letter from the collection attys stating that the debt had been reclaimed by the OC. Has anyone had this occur and what does it mean? The friend had run into bad times and had been making monthly payments--although small--to the legal firm who had filed a lawsuit--yes it does appear on the credit report--but had never obtained a judgement. No word from the OC yet, I don't know if they will update the credit line or what but if they demand higher payments, the capability just isn't there. Any thoughts or assistance?
  2. tolstoy

    tolstoy Member

    Well, the OC will probably do 1 of three things:

    1. Collect on it themselves
    2. Assign it to another CA (most likely)
    3. Do nothing (least likely)

    If the OC can validate, then they probably will and reassign with the needed documents or collect on it themselves.

    My guess is they will collect the needed documentation and either 1 or 2 will happen.

    You might want to post this to the collectors board at to find out what usually happens when a debt is sent back to an OC.

    That's just my opinion, though...
  3. jam237

    jam237 Well-Known Member

    This is way more common than you would think...

    Essentially some OC's will recall an account rather than try to dig around to answer a validation request.

    Sometimes the CA will try to force the OC to take it off of their hands.

    Sometimes its in the OC's contract with the CA that, "hey, if we get a dispute, it is coming back to you."

    If it is humanly possible for the OC to get the documentation, they'll try.

    You may get a letter from the OC (in case of a bank, or cc company) that they are processing the dispute under the FCBA - Fair Credit Billing Act. (thats the act thats always mentioned on the back of your statements, if you have any disputes, you have 60 days from the date of this statement to raise those disputes.) or countless other responses.

    You may get a letter from a new CA right away (yes, even before you hear anything on the validation.) In that case, you can find aletter in the Sample Letter forum to combat it. Send the copy of the letter you already sent, a new validation letter, and the letter in the Sample Letter forum to the new CA, and prepare to follow the bouncing account.

    If the OC couldn't validate when you asked the first CA for proof, then they may still try to come out from the woodwork, just wait to see what their next move is.
  4. lbrown59

    lbrown59 Well-Known Member

    debt had been reclaimed by the OC. Has anyone had this occur and what does it mean?
    B U M P
    THE END ** *** ** LB 59
  5. cashback

    cashback Active Member

    How do you know if there was never a judgement? Did your friend and the collection attorney both didn't appear in the court?
  6. knbunited

    knbunited Active Member

    Well, I had something quite similar to that happen to me....utility co assigned my past due acct to a CA...I paid the acct thru the CA....received paid in full letter from the CA....BUT the OC is the one who is listed on my CR...the OC is the one who keeps verifying the acct.....but because of is not listed as a Collection acct. it's listed as a delinquent acct. Go figure.
  7. knbunited

    knbunited Active Member

    with a R9 status
  8. irish

    irish Active Member

    well...we ran the CR and lo and behold the CA/lawyers lied and did obtain a judgement back in 99 even after he agreed to pay $50/mo in lieu of them getting a judgement.
    Still, this gets back to what happens now that the OC called back the judgemnt/acct?
    Has anyone had this occur? Will they try and abbrogate the agreement to pay 50 a month and demand payment in full? I don't think a judge will let them do that since he saved documentation of paying the 50 every month. But what happens now?
  9. lbrown59

    lbrown59 Well-Known Member

    You might want to post this to the collectors board at to find out what usually happens when a debt is sent back to an OC.

    You gotta take what they say with a grain of salt after all they are CAs.

    THE END ** *** ** LB 59
  10. lbrown59

    lbrown59 Well-Known Member

    But what happens now?
    irish |

    THE END ** *** ** LB 59

Share This Page