Concepts that apply broadly; check your own jurisdiction.
When a consumer account goes unpaid, the original creditor may charge it off and sell it. The company that later contacts the consumer is often a debt buyer or a collection agency, not the original lender.
A settlement in which a collector agrees to ask the credit bureaus to delete an account in exchange for payment. No law requires a collector to agree, so the terms should be in writing before any payment.
A debt for which the statute of limitations has expired. Under Regulation F, 12 C.F.R. § 1006.26(b), a debt collector must not sue or threaten to sue to collect a time-barred debt.
The person who owns the right being enforced in a lawsuit. In federal court, Federal Rule of Civil Procedure 17(a) requires an action to be prosecuted in the name of the real party in interest. Most states have a similar rule.
A document showing that ownership of property was transferred from a seller to a buyer. In debt sales, a bill of sale often refers to a separate purchase or forward flow agreement and to a schedule listing the accounts sold.
The written notice a debt collector must send under 15 U.S.C. § 1692g(a). It states the amount of the debt and the creditor, and it explains the consumer’s right to dispute the debt within thirty days after receiving the notice.
Under the Fair Debt Collection Practices Act, a person whose principal purpose is collecting debts, or who regularly collects debts owed to someone else (15 U.S.C. § 1692a(6)). Whether a company that buys debts and collects them for itself is covered can depend on how it operates.
A federal law, 15 U.S.C. § 1681 and following, that governs credit reports. It requires consumer reporting agencies to investigate disputes and to delete or correct information that is inaccurate, incomplete or cannot be verified (§ 1681i).
A federal law, 15 U.S.C. § 1692 and following, that limits how debt collectors may collect consumer debts. It bans harassment and false or misleading statements, and § 1692g gives consumers the right to dispute a debt and get verification.
A short document, signed by the trustee, that proves a trust exists and states key facts, such as the trust’s name and date and the trustee’s powers, without revealing the full trust terms. Banks and title companies often accept it instead of a full copy of the trust. Uniform Trust Code § 1013 and California Probate Code § 18100.5 are examples.
Looking for a state's court rules instead? See procedures for all 50 states and D.C.