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Buying Debt: What is a Debt Buyer?
Some Companies Prey on Those In Debt.
If you’re contacted about money you owe from someone other than the original creditor, it might be a debt buyer. Let us ensure these companies do not violate your rights.
What Is a Debt Buyer?
A debt buyer purchases other companies’ debts at a significant discount. These debts are usually delinquent or charged off by the seller, then collected by the debt buyer or a collection agency they hire.
Debts commonly purchased include:
- Credit card debt
- Deficiency balances on auto loans
- Medical bills
- Payday loans
- Phone bills
Topics we’ll cover in the following video:
- What are debt buyers and how do they acquire debt?
Who Are These Debt Buyers?
First-party creditors are the companies where the debt originated. debt buyers are the ones who purchase debt in an attempt to collect on it and make a profit.
Some debt buyers who operate throughout the United States include:
United States Debt Buyers
- ACB Receivables Management
- AM Mortgage Brokers
- AMO Recoveries
- A&S Collection Associates
- Accelerated Recovery Services, Inc.
- Account Management Services
- Account Recovery Bureau
- Account Solutions Group
- Action Collection Services
- Advanced Call Center Technologies, LLC
- Alliance One, Inc
- Allied Interstate, Inc.
- Allstate Financial Services dba Allstate Adjustment Bureau
- AmSher Receivables Management
- American Coradius International LLC (ACI)
- American Credit Collections, LLC.
- American Credit Services
- American Debt Services
- American Legal Recovery
- American Legal Services, PC
- Ameriquest Recovery Services
- Anchor Receivables Management
- The Andersen Group
- Anderson Financial Network, Inc. (AFNI)
- Ariel Financial Services
- Arrow Financial Services
- Ascent Card Services, LLC
- Asset Acceptance Corp.
- Asset Recovery Associates
- Associated Recovery Systems
- Asta Funding
- Atlantic Credit & Finance
- Aurora, Gold & Associates, LLC
- Baker, Lawrence, Attorney
- Bamford, Thomas K./Elder, Timothy L
- Barnes, Curtis, O. Con-America
- Bass and Associates
- Bay Area Credit Services
- Berks Credit Collections
- Bishop, White, Marshall, & Weibel, PC
- Blatt, Hasenmiller, Leibsker & Moore
- Booska, Steven A.
- Booth and Associates
- Brachfeld & Associates, P.C.
- Bronson & Migliaccio, LLP
- Bronson, Cawley & Bergmann, LLP
- Brumbaugh & Quandahl, PC
- Buffaloe & Associates, Lawyers
- Burgess, Douglas R.
- Burke, Edward T. & Assoc, P.C.
- The Bureaus, Inc.
- C. Barry & Associates, LLC
- C. Water Recoveries
- CACV aka CACH, LLC
- CBE Group
- CMC Recovery Services, Inc.
- CMG Recovery Services
- CRF Solutions
- CRS Capital Recovery Services
- Caferella, Jason J., Attorney
- California Business Bureau, Inc.
- California Financial Credit Association
- California Recovery Bureau, Inc.
- Cambece, James A. aka/Tough Tony
- Capital Credit Services, Inc.
- Capital Management Services
- Cashnet500 d/b/a Global Cashnet d/b/a D.R.G. & Associates
- Cavalry Portfolio Services, LLC
- Central Credit Services
- Channing & Associates
- Chase Receivables
- Check Recovery System
- Check and Merchant Services
- Civil Claims Asset Investigative Services
- Claims & Warrants
- Claims America, LLC
- Client Services, Inc.
- Coface Collections North America, Inc (CCNA)
- Cohen & Slamowitz, LLP
- Collect America, CACV aka CACH, LLC
- Collect Corp Inc
- Collectech Systems, Inc.
- Colonial Credit Corporation
- Commonwealth Financial Systems
- Conserve Collection Company
- Consumer Recovery Associates
- Continental Credit
- Convergent Outsourcing
- Convergys / Concentrix
- Cred X Debt Recovery, LLC
- Credit Collection Services (CCS)
- Credit Management Control
- Credit One, LLC
- Creditors Interchange Rcvble Mgmt, LLC
- DMG Consulting
- Delmarva Collections, Inc.
- Dendy, Michael D.
- Diversified Collection Services (DCS)
- Diversified Receivable Solutions
- E-Renter USA Ltd.
- ER Solutions
- Ebbets Partners
- Educational Credit Management Corporation, MA (ECMC)
- Educational Credit Management Corporation, OR (ECMC)
- Educational Credit Management Corporation, VA (ECMC)
- Edwin A. Abrahamsen & Associates, P.C.
- Empire Recovery Group
- Encore Capital Group
- Encore Receivable Management
- Endeavor Financial Partners, LLC
- Epstein, Roth & Associates LLC
- Eskanos & Adler, PC
- Estate Recoveries
- FMA Alliance, Ltd.
- FNBM, LLC
- Federal Bond Collection Services, Inc.
- Federal Credit Recovery/FCR Offices
- Ficka & Associates
- Fidelity Information Corporation
- Financial Recovery Services, Inc.
- First American Investment Corporation
- First National Collection Bureau, Inc.
- Firstsource Advantage
- Frederick J. Hanna & Associates
- Frontline Asset Strategies
- Full Circle Financial Services, LLC
- Fulton Friedman & Gullace LLP
- GC Services
- GMC Credit Services (Glass Mountain Capital)
- Genesis Financial Corp.
- Giove Law Office, P.C.
- Global Acceptance Credit Company (GACC)
- Global Credit Network
- Global International, Inc.
- Global Recovery Group
- Go-More Financial, Inc.
- Grabowski, O’Brien and Associates
- Graham, Noble, & Associates, LLC
- Great Lakes Collection Bureau, Inc.
- Green Tree
- Greenberg & Associates
- Griggs & Associates (G&A Investigative Services) LLC
- Gulf State Credit
- Gutman, Mintz, Baker & Sonnenfeldt
- HP Capital
- HRRG (Healthcare Revenue Recovery Group, LLC)
- Haller Harlan Taylor
- Harris & Dial, PC
- Harris and Zide
- Harrison Ross Byck, Esq.
- Hayt Hayt & Landau
- Healthcare Collections Specialists
- Hillcrest Credit Agency
- Hoffman Swartz, and Associates, Inc.
- Hosto and Buchan
- Houston Funding Corp.
- Hudson & Keyse, LLC
- IC Systems
- IMC Credit Services
- IQ Data (also doing business as Rent Collect Global)
- ISA Acceptance Corporation
- Integrity Resolution Group, LLC
- J. C. Christensen & Associates, Inc.
- JNR Adjustment Company, Inc.
- JT Keller & Associates
- Jacobs Marsh, LLC
- Jason Reed & Associates
- Javitch, Block & Rathbone LLP
- Jefferson Capital Systems
- Koparr Paralegals & Associates, LLC
- LTD Financial Services, L.P.
- LVNV Funding, LLC
- Landis, Thomas
- Lang, Richert & Patch
- Laurence A Hecker
- Lawal and Associates
- Lead Resources of America Inc
- Leading Edge Recovery Solutions
- Legal Recovery Law Offices
- Legal Recovery Services, Inc.
- Lewis Hastie Receivables Inc.
- Linebarger, Goggan, Blair & Sampson, LLP
- Love, Beal & Nixon, PC
- Lowery, Scott P., P.C. aka CACH, LLC
- M. Leonard & Associates
- MD Collections
- MRS Associates, Inc.
- Magnus Services, Inc.
- Marauder Corporation
- Meadows Law Office – Sheree Meadows
- Mel S. Harris & Associates
- Mercantile Adjustment Bureau
- Merchant’s Credit Guide Co.
- Meridian Management Solutions
- Messerli & Kramer
- Midland Credit Management, Inc.
- Mims, Jerry M., Lawyer
- Monarch Recovery Management, Inc.
- Monterey Bay Collection Agency, Inc.
- Moore, Gerald E. & Associates
- Morgans & Associates, P.C.
- Mosely & Mosely
- Myers & Porter, Attorneys
- NCC Business Services, Inc.
- NCO Financial Systems
- National Acceptance
- National Asset Management
- National Attorney’s Network
- National Bureau of Collections, Inc.
- National Credit Adjusters
- National Credit Works, Inc.
- National Enterprise Systems
- National Financial Systems
- National Recovery Group
- National Revenue Corporation
- Nations Recovery Center
- Nationwide Capital Recovery
- Nationwide Credit, Inc.
- Nationwide Recovery Systems, Ltd. (NRS)
- Nelson, Watson & Associates, LLC
- Neuheisel Law Firm, PC
- Niagara Credit Solutions Inc.
- North American Asset Investigation Bureau, LLC (NAAIB)
- North American Collectors, Inc.
- Northeast Credit & Collections
- Northern California Collection Service
- Northland Group
- Northwest Mediation Group
- Nu Island Partners, LLC
- O’Neill Management, Inc. Investigators
- OSI/Outsourcing Solutions
- Ozark Capital Corporation
- PCS, Inc.
- PMR Law Group
- Pacific Coast Collections (Alliance One)
- Palisades Collections, LLC
- Palm Island Services
- Partners Financial Services
- Peak Financial Services, LLC
- Penn Credit Corporation
- Performance Capital Management
- Phillips & Burns, LLC
- Phillips & Cohen Associates, Ltd.
- Pinnacle Asset & Capital Management Grp, LLC
- Pinnacle Credit Services, LLC
- Pinnacle Financial Group
- Pioneer Credit Recovery, Inc.
- Platinum Recovery Solutions, Inc.
- Plaza Associates
- Portfolio MG, LLC (PMG)
- Portfolio Management of Amherst, LLC.
- Portfolio Recovery Associates, LLC
- Praxis Financial Solutions, Inc.
- Premiere Credit
- Pressler & Pressler, LLP
- Pride Recovery Services
- Pro Collect, Inc.
- Progressive Management
- QAR, LLC
- Quadrant Group LLC – The Recycle Shop
- RCS Centre Corp
- RJM Acquisitions, LLC
- ROI Companies
- Ranieri, Christopher, Law Office of
- Rannefeld, Blue W. Attorney
- Receivables Performance Management
- Redline Recovery Services, LLC.
- Regent & Associates, P.C.
- Regent Asset Management Solutions
- Regional Adjustment Bureau, Inc.
- Reliant Capital Solutions
- Reliant Recovery Services, Inc.
- Resurgence Financial, LLC
- Resurgent Capital Services/Sherman
- Revenue Reporting Service
- Reynolds & Jacobson, Attorneys
- Roach, Larry, Law Offices of
- Rosenthal, Morgan and Thomas, Inc.
- Rosenthal, Stein and Associates
- Rubin Yates
- S & S Recovery
- SRA Associates
- The Sagres Company
- Scherr, Harold E. , Attorney
- Scott L Feldman
- Scott, Michael J., PC
- Shekinah, Inc
- Sherman Financial Group/Alegis (SDB)
- Smith, Rouchon, and Associates – Alabama
- Smith, Rouchon, and Associates – Mississippi
- Southern Tier Agency, Inc.
- Specified Credit Association
- State Predisposition Office
- Streeter, Sam W., Lawyer
- Sunrise Credit Services
- Superior Asset Management
- Systematic National Collection
- Taylor, Jay A. P.C. Attorney
- Tek Collect
- The Receivable Management Services Corporation (RMS)
- Titan Recovery Group, LLC
- Trak America Enterprises, LLC
- Transworld Systems
- Trident Financial Network
- TrueLogic Financial Corp.
- Unifund Group Corp.
- United Abstract Group, Inc.
- United Collections Bureau
- United Consumers Inc.
- United Portfolio Services Group
- United Recovery Systems
- Universal Fidelity
- Universal Filing Services, Inc.
- VRM Collections – Vigden Receivables Management
- Valentine & Kebartas, Inc.
- Van Ru Credit Corp
- Vasques, Louis, Law Office of
- Viking Collection Service Southwest
- Vision Financial Services
- Wakefield & Associates
- Weber Olcese
- Weltman, Weinberg & Reis
- West Asset Management Inc.
- Westmoreland Agency/Capital One Bank
- Williams & Fudge
- Windham Professionals, Inc.
- Winn and Sims, P.C
- Wolpoff & Abramson
- Worldzen Collections and Recovery LLC
- Zenith Acquisition Corp.
- Zwicker & Associates, P.C.
Is Buying Debt Legal?
Yes. Many large creditors sell their debts at a loss because it gives them a tax write-off. They also forego the effort of collecting from the borrower.
While the practice usually doesn’t break the law, there are still rampant abuses in how debt buyers operate and mismanagement of the debts themselves. Contact a lawyer about your options if a third party reaches out about a debt they claim to have assumed.
Not Just Any Debt Attorney
Jeremiah E. Heck is a founding partner of the consumer law firm Luftman, Heck & Associates. He understands the law and isn’t afraid to fight companies that violate it.
How Do They Buy My Debt?
A debt buyer may contact the original creditor or a collection agency and purchase large quantities of accounts that have not been paid. Often, they pay “pennies on the dollar.”
A debt buyer may purchase debts in bulk without verifying any information or accuracy of the account. As a result, they may report inaccurate data on your credit report. This might lead to a counterclaim.
The debt buyer takes a risk that these debts may never be paid. However, if even one person pays, it typically ensures a considerable profit for the debt buyer.
Debt Buyers’ Abusive Tactics
After purchasing a debt, a debt buyer will often engage in aggressive measures to collect the amount owed. Usually, a debt buyer will begin via phone calls. This will quickly progress to sending letters, more calls, and sometimes calls to third parties to collect additional information.
Although each situation must be evaluated individually, many debt buyers’ collection tactics are illegal. Finally, a debt buyer will likely file a lawsuit against the debtor at some point, where they hope for a default judgment based on you not responding.
Defending Debt Buyer Lawsuits
If a debt buyer does file a lawsuit against you, an array of defenses may apply.
You can force the debt buyer to prove ownership of the account. They will have to produce a paper trail from your origination of the debt by purchasing the debt.
Proving the Balance
You also have the right to demand that the debt buyer produce all documentation that demonstrates the balance alleged in the lawsuit is true and accurate.
Authenticate the Documents
Examine the authenticity of the documents the debt buyer intends to introduce at trial, as well as the credibility of the person attempting to submit the documents.
Research the debt buyer company to ensure they are licensed to conduct business in Ohio. They must be licensed businesses to purchase debt and collect on those debts.
Additionally, you can raise any defenses you might have had with the original creditor. These may include mistaken identity, unauthorized charges, errors in billing, the statute of limitations issues, or more complicated defenses such as examining whether the account was transferred to a master trust to act as collateral for the sale of securities.
Why Use a Debtor Defense Attorney
Often, a debt lawyer can help you resolve issues with a debt buyer before or after a lawsuit is filed. By working with a lawyer licensed in Ohio, you can be confident the same attorney can stand with you in court if necessary.
Protecting Your Rights
The Fair Debt Collection Practices Act applies to debt buyers and other collection agencies and debt collection law firms. You have rights under the FDCPA, and debt buyers are known for violating those rights.
Representation in a Lawsuit
If a debt buyer sues you, you will need a debt defense lawyer to develop strategic defenses to support your case. You may also be able to file a counterclaim for certain violations.
Overall Debt Relief
It can be stressful to have debt and receive threats from companies like debt buyers. However, your attorney can evaluate your situation and help you understand your options for debt relief.