There are instances when the collection attorney will put down the original creditor’s name as the plaintiff when it is really the collection agency suing you. This is when you can file a dismissal for failure to name the real party in interest. You just can’t assume that what is written on your summons and complaint is true. However, just because a collection attorney is suing you in the original creditor’s name, does not mean that he isn’t really representing the original creditor. At times, banks hire collection attorneys to sue you for the amount you owe them.

I really need to blog about this because I have had people emailing me, telling me that they are going to file a motion to dismiss because they looked up their credit report and it stated that the original creditor closed their account and is listed as charged-off. They email me defensively, saying, “I ordered my credit report and this just proves that it’s the collection attorney pretending to be the original creditor because my credit report says this account was charged-off! I’m filing a motion to dismiss”. Be very careful. Does it say ‘charged off’ or ‘sold to another lender’?

Call the original creditor and ask them if they still own your account or if they sold it. If you just pull your credit report and it states that it is a charged-off account, you need to also look and see if it says ‘sold to another lender’. That would tell you that a collection agency bought your debt.

Any time you receive a summons and it is from a collection attorney with the original creditor’s name as the plaintiff, the collection attorney could simply be representing the original creditor and the plaintiff is the correct one. There are times when collection agencies will put the original creditor down as the plaintiff when the collection agency is the true plaintiff. If you receive a summons that lists the original creditor as the plaintiff and a collection attorney is suing you, think twice before you file a motion to dismiss, because that collection attorney can be representing that original creditor.

Call the original creditor and ask if they sold the debt. If they say, “No, we transferred this to our collection department,” then you know that they are the ones suing you. Simply ask them whether they are suing you or not. They will tell you, and then you will have your answer to whoever is suing you. You will not have to waste hours of your time on the internet trying to figure out whether it is a collection agency or it if is the original creditor that is the plaintiff suing you.

Once your account is charged-off, the original creditor has every right to move your account over to their own internal collections department. Many times it will sell it over to a third party debt collector.

Additional Information

• cel

  “If the atty sent a letter indicating that the account was assigned to them, but their clientis National Attorney Network, is the original creditor still the Plaintiff? The original creditor charged off the debt but still owns it. The creditor said to call TSYS who is this National Atty Network.”

  
  

• Rufus

  “Just call the original creditor?. They lie about still owning the debt all the time. That has been my experience especially with Discover Bank. These law firms sue in the original creditors name all the time without the original creditors knowledge. They may send a collection letter to you, then sue you a year later. Or this scam of the original creditor sending it to the “Attorney” Network NCO and NCO sending it to a local or area Attorney. I believe most of the judgments on the books regarding credit card debt are VOID.”