“The moment they do so, the debt is settled. “
I don’t think you know how debt works. They can sell your debt at any time but you still owe it. Remember, you promised to pay it back. They have your promise.
That’s why they can take you to court and force you to pay. If it wasn’t legal, the court would throw it out.
The court isn't going to throw out anything it isn't asked to throw out. And people don't ask to throw out something they think are valid. And people don't know the difference between creditors and debt collectors, and they don't know that debt verification involves the display of original debt documents that verify a creditor, and not merely the fact that the "rights" to collect collect a debt were purchased from an actual creditor. And if they do demand such things, why would a court force you to pay something that federal law describes as actionable debt collector fraud? It wouldn't.
And as for promising to pay it back, Rhett creditor also promised to accept payment from the debtor - not accept a lower payment from a third party. The moment they do that, there is no debt for the original debtor to pay back, because the debt instrument was used to receive payment from the debt collector. No one is running out on the debt - there IS NO debt once it has been "sold." And that is proven by the impossibility of the debt collector to verify the debt, and therefore verify their status as creditors, one the law.
These are facts.