[Lucy]

So today I get a notice from a JDB stating they are my new creditor. What the heck does that mean? It appears they purchased an old debt that is out of the SOL and not even on my CR's. Do I just send for validation?

Thanks

[Enigma]

A JDB cannot be your creditor if the debt is defaulted on.

Read the definitions in the FDCPA:

803(4) The term "creditor" means any person who offers or extends credit creating a debt or to whom a debt is owed, but such term does not include any person to the extent that he receives an assignment or transfer of a debt in default solely for the purpose of facilitating collection of such debt for another.

[roybean]

What he said and yes do send a DV by certified mail return reciept requested and do check your credit reports for factoring accounts....then get back to us.

[neil5623]

The number of JDBs that report like this seem to be growing. Or is it the number of JDBs that seems to be growing? Either way, let's watch out.

[hannah]

Lucy, in most states there are statutes that a debtor may pay the original creditor unless advised in writing that a debt has been sold or transferred. That is probably why you received that letter.

Now, if it were me, I would request them to provide info for the following:

Section 5-19-22
License to engage in business of making consumer loans or taking assignments of consumer credit contracts - Required; exceptions; application; investigation of applicant; investigation fee; standards for issuance; hearing on qualifications of applicant; effect of holding license under Small Loan Act; form; posting; nontransferable; license fee; penalty for late payment of license fee; disposition of license fee.

(a) No creditor having a place of business in Alabama, or having a resident employee in Alabama whose employment includes making consumer loans or taking assignments of consumer credit contracts shall engage in the business of making consumer loans or taking assignments of consumer credit contracts without first having obtained a license for each location in Alabama from the administrator; provided, however, that a creditor having no place of business in Alabama but having a resident employee in Alabama whose employment includes making consumer loans or taking assignments of consumer credit contracts shall obtain a license for the location where the creditor maintains its records regarding Alabama loans or Alabama consumer credit contracts; and provided further, that, banks chartered by this state or any other state, banks chartered by the United States, trust companies, savings or building and loan associations, savings banks and other thrift institutions, credit unions, life insurance companies, and federally constituted agencies shall be exempt from licensing. A seller, with respect to consumer credit sale transactions and the financing of charges permitted by this chapter, is not required to be licensed under this chapter.

(b) The license application shall be in writing, under oath, in the form prescribed by the administrator, and be accompanied by an investigation fee of one hundred dollars ($100).

(c) Upon receipt of the application and investigation fee, the administrator shall investigate the applicant and determine whether the license should be issued or denied.

(d) No license shall be issued unless the administrator determines that the financial responsibility, character, and fitness of the applicant, and of the members thereof if the applicant is a partnership or association, officers and directors thereof if the applicant is a corporation are such as to warrant belief that the business will be operated honestly and fairly within the purpose of this chapter and finds that the applicant has assets available for the operation of business under this chapter of at least twenty-five thousand dollars ($25,000).

(e) Upon written request, the applicant is entitled to a hearing on the question of his qualifications for a license if:

(1) The administrator has notified the applicant in writing that the application has been denied; or

(2) The administrator has not issued a license within 60 days after the application for the license was filed.

A request for a hearing may not be made more than 15 days after the administrator has mailed by certified mail a writing to the applicant notifying him that the application has been denied stating in substance the administrator's findings supporting denial of the application.

(f) Any person licensed under the Alabama Small Loan Act may engage in business under the Alabama Small Loan Act, but shall not make loans in excess of seven hundred forty-nine dollars ($749) unless such person is also licensed under this chapter. The payment of the license and examination fees required by this chapter shall be in lieu of the license and examination fees required by the Alabama Small Loan Act when the licensee is also licensed under the Alabama Small Loan Act.

(g) The license shall be in the form prescribed by the administrator, posted conspicuously in the place of business of the licensee, and shall not be assignable or transferable or removed to another location without permission of the administrator.

(h) The annual license fee shall be five hundred dollars ($500) for each office, branch, or place of business of the licensee, which shall be due on October 1 of each year, and shall be for a one-year period ending September 30 following, and shall be delinquent on November 1 of each year, and there shall be a penalty of 10 percent for each month or part thereof that the licensee is delinquent in the payment of such license fee. All license fees and investigation fees collected shall be paid into the special fund provided by Section 5-2A-20 and used in the supervision and examination of licensees.
(Acts 1971, No. 2052, p. 3920, §18; Acts 1983, No. 83-747, p. 1244, §1; Acts 1996, No. 96-576, p. 887, §2.)

[roybean]

As soon as I catch my breath, I am about to do my first JDB because I have one of those letters and they are waiting for the SOL in the FDCPA before they do anything else because they know it is a violation. I disputed as soon as I got the letter back in April, but they continued collection by reporting a factoring account to my credit reports. I disputed the trade lines and then they sent me validation (about 5 months later) telling me that they take the rights of consumers seriously.

[hannah]

Originally Posted by roybean

As soon as I catch my breath, I am about to do my first JDB

Because I am such a nice person, I won't make a comment...

[roybean]

Originally Posted by hannah

Because I am such a nice person, I won't make a comment...

You know what I meant...where is your mind at this morning?

[jlynn]

The same place it is every morning?

[Lucy]

Thanks all for your comments. Along with my validation letter do I need to add that they cannot be my new creditor for reasons enigma and hannah showed? They aren't on my cr's cause I checked this am.

[hannah]

Originally Posted by Lucy

Thanks all for your comments. Along with my validation letter do I need to add that they cannot be my new creditor for reasons enigma and hannah showed? They aren't on my cr's cause I checked this am.

Since this is out of SOL, I would have a lot of fun with it. Perhaps even see about a faux complaint to send with the DV?

[roybean]

Originally Posted by Lucy

Thanks all for your comments. Along with my validation letter do I need to add that they cannot be my new creditor for reasons enigma and hannah showed? They aren't on my cr's cause I checked this am.

I never offer up any voluntary information; they know what they do, but they expect that you don't know which is why debt collection is a multi million dollar business.

[Lucy]

Well I'm on a roll this evening.

Ok..This place is now listed on my cr's as open-factoring co acct. It shows it will be removed 6-08. It also shows on TU to be a collection acct.

I sent a letter to them informing them that they were not my new creditor according to the FDCPA. I also told them the sol for this type of debt in Alabama had expired. And, the amount, character and legal status of the alleged debt is disputed.

Still haven't heard from them so I want to know, should I address the factoring co acct bunch of bull or let it ride for 6 months until it falls off my cr's?

[Enigma]

I believe that AL has a Statute of Repose. That means once the SOL has expired the debt is not legally yours anymore and can no longer be collected on.

Did you DV them and is the CR entry marked as in dispute?

[Lucy]

Originally Posted by Enigma

I believe that AL has a Statute of Repose. That means once the SOL has expired the debt is not legally yours anymore and can no longer be collected on.
Did you DV them and is the CR entry marked as in dispute?

Statute of repose is 20 yrs. I did sent off a DV and haven't heard from them, that was Nov 14th. CR's not showing in dispute either. They show loan type-open-factoring acct, pay status-collection acct, acct type-open, item to be removed 6-08.

Thanks

[Lucy]

It seems that my letter did some good, these sap suckers are no longer on my cr's and I got a notice from TU saying they had been deleted.

Thanks folks for your guidance.

[Hedwig]

That's good news. Keep up the good work.