I think a junk debt buyer is just one organization networking with collection agencies. Think of them as a food distributor who distributes their products to a variety of supermarkets and mom and pop stores.
It's an important distinction, and one that typically ought to be made so that your strategy and tactics are correct. A CA is under contract to collect debt that it doesn't own. It works either with the OC, or with a JDB. A JDB buys defaulted debt from OCs, or from a JDB that stands in a chain of title with an OC as the first owner (second, third, even fourth placements are common). A JDB may collect for its own account, or it may do no collecting whatsoever, always contracting a CA to do the dirty work. If a JDB owns the debt, chances are they don't have the supporting documentation necessary to win a court case and they may be unwilling or unable to get it (because even if it's available, it'll cost them--OCs don't search their archives and copy things for free). JDBs cannot help you with OC TLs. They can only remove or modify their own.
exactly, if you want a tl removed, it would have to be a ca, not a jdb... so it is important to be able to tell...anyone...how do you tell the difference without calling and asking? also, what is the difference in validation technique between ca, oc, and jdb?
I think the critical difference you are speaking of is "who is doing the collection activity"; as flacorps pointed out, a jdb can be just a broker of the debts. They may, or may not, do any collections. As for the TL, only the CA will put the TL on your report. It depends upon whether the CA is acting as a principal (they own the debt), or as an agent (contracted to collect). Are you referencing this question as to strategy for removing TLs, or "beating the debt"?
well, all of the above...removing a tl, validating the debt, and above all, what if they dont properly identify themselves? do you have to speak to them? are they allowed to lie to you? is there any other more discreet way to tell the difference between a ca and a jdb? for instance, a hospital (the oc) sent out "financial aid" forms that did not hint that the forms were to be sent to a ca, but just had a different address. when I called the hospital, they that was their "financial aid" department, not a ca. It was like pulling teeth getting them to admit that the forms were going to a ca. in what way are oc's, ca's ,and jdb's legally obligated to identify themselves?
