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Can someone explain this law?

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dn4192

Junior Member
What is the name of your state? indiana

I was informed that congress passed a law that stated that a party like a collection agency which purchased a debt charged off by another company (say a credit card company) could seek out the party owing the monies via phone and letter, but could not take that party to court in a legal action if none of the monies recieved benefited the original creditor. I have spoken to some people who say this law is on the books, but others who said it's not, and others who said it is, but that most judges don't follow it. So how can I find out for sure what the law is and such?
 


FlyingRon

Senior Member
The federal law doesn't preclude it, just says you have to take action in a certain venue (where the property you're going after is, where the contract was signed, or in the residence of the debtor).

Some states require the collection agency to actually have the contracted assigned to them (bought as you say).
 

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