2007-03-12 13:37:38 · 8 answers · asked by brat2536 1 in Business & Finance ➔ Other - Business & Finance
Yes, and legally so. That company took over your former companies debt in an attempt to collect it. They usually have already paid the ther company a percentage in the hopes they can get what is owed to them by you at a reduced rate. If it is a company that bought another company out, then they bought the companies debt too, and under law, you are required to pay them as you would the other creditor. They have the same legal resource as the original creditor also. They can report you to the credit agencies, and call until you have reached an agreement, paid it off, or have been sent to another collection agency.
2007-03-12 13:42:12 · answer #1 · answered by Kevin M 3 · 1⤊ 0⤋
Yes! Companies buy and sell debts between each other like stocks. It's actually an asset from their point of view. It works like this. Joe Dumb *** owes me $20,000. Firm A sells the debt to Firm B for $15,000. Firm A would rather get $15,000 now and forgo the $5,000 difference. Firm B wants to collect the full $20,000 but Firm B realizes Joe is a Dumb ***. Firm B hires a debt collector and tells the nice man, "Hey, if you can get at least $19,000 from Joe Dumb ***, then I'll give you $1,000." Firm B hopes to collect $19,000 from Joe Dumb *** and pay Nice Mr. Debt Collector $1,000 for his trouble. Firm B would like to see $3,000 profit at the end of the day, but Firm B forgets that Joe is a Dumb *** and will never pay his debts :(
2007-03-12 20:50:54 · answer #2 · answered by InvisibleWar 2 · 0⤊ 0⤋
some creditors sell the debt you have with them to a third party. Usually when they do that , they have sold it for so much on the dollar. You are then legally obligated to the "new" creditor even if you had no contract with them. It doesn't seem fair does it?
2007-03-12 20:42:45 · answer #3 · answered by unforgettable_1 3 · 0⤊ 0⤋
Yes, if company A sells your debt to company B, it's only because company B can legaly demand your payment.
2007-03-12 20:40:38 · answer #4 · answered by geevs80 2 · 0⤊ 0⤋
Yes
they bought the loan
2007-03-12 20:40:42 · answer #5 · answered by caretaker 5 · 0⤊ 0⤋
yes
2007-03-12 20:39:59 · answer #6 · answered by Skyhawk 5 · 0⤊ 0⤋
YES YES YES IF IT WENT TO COLLECTIONS
2007-03-12 20:40:07 · answer #7 · answered by Anonymous · 0⤊ 0⤋
Yep.....and you can't get out of it........so just go ahead and pay it and get it over with.
2007-03-12 20:44:34 · answer #8 · answered by cajunrescuemedic 6 · 0⤊ 0⤋