I was sued by a collection agency as an assignee a couple of years ago for a card I had with Providian. Providian did not exist at the time I was sued, nor had it for years.. Is this even legal or perhaps a fraudulent law suit?Perhaps I was not clear enough on the details. I know for a fact that they did not purchase this debt from the original creditor as I received several collection letters from the company who did, right before Providian went out of business. They would have had to purchase it from that company as Prov was no longer in business in the time frame they would have had to purchase the debt. So to clarify, can they claim they are an assignee of Providian, when in fact they did not purchase the debt from them at all?
The right to collect on a debt can be transferred to a different party, even if the original creditor ceases operations.
Interestingly student loan borrowers can't discharge student loans in bankruptcy and owe EVEN if the creditor that it contracted with filed for bankruptcy or simply went out of business. But I digress a bit.
The more important question is whether the lawsuit has been filed timely, in other words, before the statute of limitation (based on state law) expired. Check Florida civil code rules for statute of limitation on written contracts.
When a company goes out of business, any assets it has can be sold. Your reasoning is flawed, if you purchased a car from someone who later died, using this reasoning, wouldn't you expect to still be able to claim ownership benefits in the car?
As long as the collection agency has paperwork showing that they acquired the debt legitimately, the lawsuit is legitimate & isn't fraudulent.
Hope this perspective helps!
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