Legal Question in Banking Law in Arizona

Credit card reassignment and civil lawsuit

If I defaulted on a credit card 3 years ago and that company posted a write off on my credit report, can they sell the debt to a different company? If so, does the new company, that purchased the debt, have the right to file a civil law suit against me and add additional interest, penalities and legal fees?


Asked on 11/18/08, 1:33 pm

1 Answer from Attorneys
Warren Markowitz Warren R. Markowitz, Esq

Re: Credit card reassignment and civil lawsuit

Unfortunately the answer to your question is Yes.

The write off by the credit card company is an indication that they are unable to collect the debt. But the debt remains unless it is discharged.

As for the other company, they are entitled as the new owners of the debt to make attempts to collect it. The fees, interest, penalties,etc are all avenues they may use to press for your payment.

I would suggest that you contact them and attempt to negotiate a payment plan. But first I would demand a notice that they have purchased the debt from the other company and that they are entitled to collect on it.

Read more
Answered on 11/19/08, 3:14 pm


Related Questions & Answers

More Banking Law questions and answers in Arizona