Is there a difference between a collections company and a debt acquisition company? I was told today the company coming after me for a past due amount on a payday loan wouldn't give me their licence number because they were not a collection agency. Therefore the FDCPA violations/laws did not apply to them. Is this correct? Is there a difference? They are both trying to collect a an amount owed to a vendor, right? In the state of TN this company is not a licensed collection agency but it does not give me the option of searching for debt acquisition licenses. The company stated they are a "network of attorney's" hired by an agency.
This sounds like a complete scam. The FDCPA defines who a debt collector is. But setting that aside, the fact that they lie like this, and collecting on a pay day loan, means they are not legitimate. Here is an article I wrote about payday loan collection scams, how to spot them and what to do about them. (link below).
I am not your attorney unless you and I have signed a retainer agreement. What I am saying is not legal advice. Do not act on this information without engaging my services, this is for consideration only.
I agree - sounds like a scam. Often these payday loan collection outfits turn out to be scams.
Please note that no attorney-client relationship is created by my answers to questions on the Avvo forum. My responses should not be construed as legal advice, regardless of whether I am admitted to practice in your state or not. I am an attorney in Miami Beach, FL, practicing foreclosure, bankruptcy, credit repair, debt defense, and aviation law. Please consult a lawyer in your state if you seek legal advice.
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