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I know back in the day there was a clause in the FDCPA that stated a debtor can demand that a collection account be reverted back to the OC. We used it quite often when a CA was being uncooperative and wouldn't accept payment arrangements. Occasionally if you reverted it to the OC and paid the OC before they could report it it would conveniently fall through the cracks.
Does anyone know if this clause has changed with the new legislation or if this is still a valid technique?
FDCPA
Hi Katrina,
Hey, I don't know of any such clause now in Fair Debt Collections Practices Act (FDCPA) that allows the debtor to demand a pull back of the account from the collection agency.
Thanks,
Aaron
When I have time this week, I go thru my old notes and see if I can't find it. It may have been a different consumer protection law - as I wrote on another post - legally the debt/contract is with the debtor and the OC. Unlike an assignment of mortgage, "contracts" with doctors and hospitals, telephone companies etc.. do not have an assignment clause that both parties agree to. The OC has a contract with the CA but not the debtor. If the original creditor accepts payment for the debt, then the debtor and OC's contract has been fulfilled, the OC then has to take action described in their contract with the CA - not debtors responsibility.
I have only had one or two OC (over 20 years of doing this) send the check back and tell the debtor they could not accept the payment.