Often, lenders bundle up a group of people’s debt and sell it to another company at a discount. This new company can collect on the debt, but is still held to certain legal standards about how they must notify borrowers and what records the must keep. Sometimes, a dispute arises regarding the transfer of debt as was the case in a case reported by the New York Law Journal on January 27, 2015.

A company that bought debt and tried to collect on it brought one man to court over credit card debt. They said that he was not paying his required monthly payments. This company claimed that the order to pay came from the original creditor. However, records created when the debt was transferred between companies, did not include all the details of his account. The man moved, so he never received notice that a different company was handling his credit card debt. For the same reason, he never received statements from the new debt collection agency.

The court ruled in favor of the individual debtor, thus dismissing the company’s request to collect on the debt. The judge found that the debt collection agency did not prove it was entitled to money from this debtor. For example, no one involved in the case on the side of the credit card debt company could state that the statements were properly mailed to the debtor.

Jayson Lutzky is a Bronx, New York attorney with over 31 years of experience. Over the years, he has represented thousands of highly satisfied clients. Mr. Lutzky handles personal bankruptcy cases. It is possible to wipe out debts, such as credit card debt and medical debt, in a Chapter 7 bankruptcy. To set up a free in-office consultation, call 718-514-6619. Visit www.MyNewYorkCityLawyer.com to learn more about Mr. Lutzky.