Question

Logan borrows $150,000 from Ready Money Credit & Debit to buy new equipment for Logan’s Steakhouse. When Logan does not pay the loan, Ready Money wants to transfers the right to the payment to Action Collection Agency. Action Collection agrees to pay Ready Money for this right, but for a price that is less than the amount owed. Can Ready Money transfer this right to Action Collection without Logan’s consent? If so, and Ready Money committed fraud in the deal with Logan, could Logan legitimately refuse to pay Action Collection? Explain.

Answer 1

answer-

yes, Ready money can transfer this right to collection agency to collect the debt from Logan. this condition only arises if Logan is unable or refuses or failed to pay the debt to ready money. A lender may outsource the debt-collection activity to a third party (the collection agency), or it may have an internal department or a debt-collection subsidiary that would handle the job .

When a borrower defaults on his debts or fails to make scheduled loan payments, the creditor will report this delinquency to a credit bureau. Then, not only will the borrower's credit history be tarnished, but his debt will be turned over to a collection agency within three-to-six months of default.

In this case, if Money committed fraud in the deal with Logan, then Logan legitimately refuse to pay Action Collection . the fraud can be in terms of wrong debt amount or asking for money money than you actually owe .

When the debt collector sends you the written debt validation notice, the notice has to include the specific amount the collector claims you owe. A debt collector can’t legally say that you owe more.

If you suspect the amount of money you’re asked to pay isn’t the correct amount, send a letter to the debt collection agency notifying it of this within 30 days. The agency then has to verify the debt in writing. It can’t contact you again until it does.

You can dispute the debt after 30 days, but the debt collector can keep calling because you missed the 30-day deadline.

If you dispute the debt because you don’t think you owe the money or the amount is incorrect, the debt collector has to stop calling you while your claim is investigated. And debt collectors have to verify any debt you dispute in writing prior to renewing collection calls. Once a debt collector sends you verification of the debt, collection activities—and calls, emails and more—can start up again.