Ok..help me understand. I take out a credit card with xyz bank and xyz bank extended me credit of $1,000. I rack up my card to $1000 and fail to pay.

Xyz bank then sells my credit to abc collection agency and writes off the credit at a loss?

I never signed a contract with ABC collection agency I signed a credit line with xyz bank. So if xyz bank wrote off the loan...why should I be required to pay a company I never entered into an agreement with? Should i not deal with xyz bank still?

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ScrewWorkn t1_j6ov3co wrote on January 31, 2023 at 9:17 PM

>why should I be required to pay a company I never entered into an agreement with?

Because the purchased the loan from the xyz bank. You can agree not to pay ABC Collection and it would be the same effect as not paying xyz bank.

Werewolfdad t1_j6ovbh1 wrote on January 31, 2023 at 9:18 PM

>So if xyz bank wrote off the loan...why should I be required to pay a company I never entered into an agreement with?

Because the collector bought the loan contract from the bank

An example clause in the credit card agreement:

>WE MAY SELL YOUR ACCOUNT We may at any time, and without notice to you, sell, assign or transfer your account, any amounts due on your account, this Agreement, or our rights or obligations under your account or this Agreement to any person or entity. The person or entity to whom we make any such sale, assignment or transfer shall be entitled to all of our rights and shall assume our obligations under this Agreement, to the extent sold, assigned or transferred.

marvelguy1975 OP t1_j6oyv49 wrote on January 31, 2023 at 9:40 PM

Ok...cool...thanks makes sense

t-poke t1_j6ovcxg wrote on January 31, 2023 at 9:18 PM

Because buried deep within the contract that you signed with XYZ Bank is a clause that says if you fail to pay, they're allowed to sell your debt to ABC Collection Agency and they have every right to collect from you.

marvelguy1975 OP t1_j6oyts4 wrote on January 31, 2023 at 9:40 PM

Ok..thanks.....makes sense

AllTheyEatIsLettuce t1_j6pb6ga wrote on January 31, 2023 at 10:59 PM

>why should I be required to pay a company I never

Because consumer debts are assets. Assets that someone owns and can sell to pretty much anyone else who wants to buy the assets. Over and over and over again. You owe them the money they used to buy the assets.

Consumer debt isn't worth as much as a debt secured by the underlying value of property, like the mortgage debt for your home or the loan you took out to buy a car, but they're assets nevertheless.

Your home can be foreclosed and your car can be repossessed and both sold to cover some of the lender's money you got to buy the home and the car in the first place. Your dinners at Nobu and The French Laundry, or your transplanted kidney, or the metal plate that's holding your skull together, not so much.

herltl08 t1_j6p1nzw wrote on January 31, 2023 at 9:57 PM

Never ever negotiate with these agencies. Always tell them that you will only deal with the original creditor. That is your right no matter what the fine print says.

marvelguy1975 OP t1_j6p7j7x wrote on January 31, 2023 at 10:35 PM

I hear that...so whats my option? Would one of these companies then discharge the credit?

I'm doing good paying shit off and I will be debt free in 24 months...but...anything helps if you know what I mean