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Who are you and why are you asking me for money?

Michael Rapp Dec. 24, 2013

Imagine this: An unfamiliar company name pops up with a past due account on your credit report; a letter arrives in the mail from a debt collection firm saying you owe money to a company you’ve never heard of; you’re served with a summons to court saying you’re being sued for a debt by a company you have never heard of….

Is this legal? How does this happen?

While you’ve never done business with these companies, they are doing business with someone who knows you. There is an industry in the shadows of traditional banks, credit card companies and cell phone companies that buy up, for pennies on the dollar, their portfolios of debt from customers that they don’t bother to collect. These bottom feeders are called debt buyers and they make large profits collecting old consumer debts. In fact, they are some of the fastest growing and most profitable companies in the world.

However, there is a difference between an “original creditor” who originally extended you the credit and a debt buyer. This is important to you because there are different rules that apply.

Federal debt collection laws known as the Fair Debt Collection Practices Act (FDCPA), regulates the conduct of debt buyers. The FDCPA regulates anyone collecting debts that are not originally their own. A company subject to the FDCPA must not use false, misleading or harassing debt collection tactics.


If you’ve received a collection letter, been sued for a consumer debt or discovered a consumer debt on your credit report you should determine if you’re dealing with an original creditor or a debt buyer. In our experience, debt buyers and debt collectors routinely have problems proving in court that you owe them the debt and regularly violate the FDCPA. If you’ve been the victim of an FDCPA violation, you may sue the debt collector for statutory damages up to $1,000.00, actual damages and the debt collector may have to pay for your attorney.

If you need help defending a debt collection law suit, stopping harassing debt collectors or suing a debt collector, we are happy to talk to you at no charge. Contact us today to see what we can do to help you.

Here are a list of a few Debt Buyers:

  • Cavalry SPV I LLC

  • LVNV Funding LLC

  • Midland Credit Management, Inc

  • Midland Funding LLC

  • Portfolio Recovery Associates LLC

  • Resurgent Capital Services L.P.

  • United Credit Recovery LLC