THIRD-PARTY DEBT BUYER LAWSUITS
Defending a Texas Lawsuit Filed by a Debt Buyer
How purchased accounts, chain of ownership, account records, and Texas debt-buyer requirements can affect a collection lawsuit.
A third-party debt buyer purchases accounts from another company and may later file a lawsuit in its own name. Common debt-buyer plaintiffs include Midland Funding, LVNV Funding, Portfolio Recovery Associates, Cavalry SPV I, and other companies that purchase groups of consumer accounts.
Because the plaintiff did not create the account, ownership of the specific account can be an important part of the case. The debt buyer must establish its right to collect and prove the amount it seeks through evidence the court may consider.
A charge-off is an accounting event used by a creditor. It does not automatically erase a debt, prove that a debt buyer owns it, or establish that the balance stated in a later lawsuit is correct. Debt-buyer cases may resolve through dismissal, settlement, judgment, or trial depending on the facts and evidence.
Logie Law Firm represents qualifying defendants in Texas debt-buyer lawsuits. The firm does not handle bankruptcy, student loan debt, alimony debt, or child support debt matters.