The Chain of Title Problem
The debt buyer must prove an unbroken chain of assignments from the original creditor. In practice, these documents are often missing, incomplete, or fraudulent. Challenging this can defeat the entire claim.
Demanding Verification
Send a written dispute within 30 days of first contact. The buyer must provide: verification of amount, name of original creditor, and documentation of their right to collect. Send by certified mail.
What to Look For
Common defects: generic affidavits with no personal knowledge (robo-signing), bills of sale not identifying your account, missing chain links, inconsistent account numbers, and statements that do not match the claimed balance.
Frequently Asked Questions
What if they can't prove ownership?
They cannot legally collect. If sued, file a motion for summary judgment or raise lack of standing. If not sued, refuse to pay until they provide proper documentation.
Do I need a lawyer?
You can dispute yourself by sending a verification request. For litigation, a consumer attorney is recommended. Many take these on contingency.
Do debt buyers often lack documentation?
Yes. The FTC's 2013 study found buyers receive very limited documentation -- often just a spreadsheet. When challenged, many cannot produce original agreements or complete chain of assignments.
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