Q: I'm a little confused. Is it legal for a third party to buy and try to collect a debt (4 x's ) the original amount owed
1.Not the original creditor (Midland funding bought it)
2.May have been charged off by original creditor
3.Midland is sueing for 4x the original debt ie. (Fees)
4.Can the FDCAP help after a lawsuite is filed.
A:
It is legal for a third party to buy the account an ask for whatever was owed under the contract. Think about how old this account is. If it was a credit card with a 25% interest rate, adn it went unpaid for 3 years, the amount the card company says it si owed would be the principal x 1.75. You can see how it can get up there quickly.
That being said, Midland can't cahrge you interest at the card issuer rate. And they can't add illegal fees. Someone collcting for Midland may be loading the amoutn with illegal fees. Ify ou've been sued, you need to ask for discovery of how they come to the amount claimed.
The FDCPA can come into play after litigation, if the colletion lawyer violates it while ttrying to collect from you. Just remember, it is not a defense to the action. Maybe a counterclaim, but not a defense.
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