A consumer cannot know, and should not assume, that a debt buyer actually owns the debt or that a debt collector is authorized to act by the true owner of the debt. This is evident from the CAMCO case. As noted above, there are many instances where a consumer pays the debt only to receive a call two months later from another debt collector about the same debt.

A consumer has the right to receive proof that the debt collector owns the debt. Even if the consumer recognizes the debt and believes he or she owes it, they should request, at a minimum, some proof of ownership.

Many consumer debts are “securitized,” or transferred to third parties or trustees for the purpose of permitting investment, with “servicing” retained by the originator.