I was told today that a third party can buy debt from a credit card company like a law office is this true?

Answer 1

I agree with gin_in_mi

Generally most law offices do not purchase bad debts.
The collection agencies will continue to own the debts but may turn them over to a law office for collections. It may just be a strong arm tactic on the collection agency's part or it could be a prelude to a law suit.

When a law office is in the practice of debt collection for the collection agency, the law office itself is considered to have a collection agency status. And because of that, the law office is governed by the laws of the FDCPA just as any other collection agency is.

If the law office violates the FDCPA, they can be held liable for the violations just as any collection agency. Plus, they would also have to answer to the Bar Association if a complaint was filed against them for the violations.

Answer 2

Normally an actual law office will not purchase a CC debt... however.. a CC company may turn the debt over to a law office for collection if the account is deliquient... Many of the companies that you get mail or phone calls from have an attorney in the office, but are primarily a collection agency...

There are 3rd party companies that will pay the originating CC company cent's on the dollar for a deliquent account.. then work at getting you to pay the full amount... PLUS fees

Answer 3

Yes this is very much true say for instance that you have reached your 7 yrs of having this debt your credit card co will sell your file to a collection agency once they get your file they will reopen your account like it was brand new and they will bug you like crazy now i don't know if they sell your file to a law office but they will sell it to a collection agency.