[Talisker]

All these people have to do is demand the debt collectors produce the original debt agreements.

Because they can’t.

Debt collectors BUY debts. The moment they do so, the debt is settled. The original debtor literally agreed to settle the debt through a third party payment. At that point, that’s it - it’s over. The original debtor owes nothing to the third party debt collector.

But debt collectors know people don’t know this. Nevertheless, if people demand to see the original debt instrument, note or agreement, the debt collector can’t produce it because it was settled the moment they bought it. Contractual agreements with original lenders to allow debt collectors to buy debts don’t matter for this very reason - once the debt collector buys the debt, there’s no more debt, so there’s nothing to collect.

Debt collectors simply gamble that people don’t know this and will pay without calling them on their institutionalized fraud.

Note - this deosn’t apply when the lender hires a debt collector, but keeps the original debt for themselves and doesn’t sell it. Then the debt is still intact.

[Kartographer]

There will be FReepers along short to explain to you how big a ‘deadbeat’ you are! ;-)

[AppyPappy]

“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.

[steve86]

Totally inapplicable to filial medical debt.

[goat granny]

my sister was in charge of my dads estate.( he had all of his money split between his children with a saving account for each child, so all we had to do was go to the bank and empty the account) But 6 months after his funeral she was getting bills from doctors we never heard of....she wrote the bill collector that they could send all future bills to White Chapel cemetery because there was no estate left) but to not send her any of his bills especially from doctors no one in the family ever heard of...it worked..

[PoloSec]

This is interesting; and it raises some questions; assuming as your comment suggests; you have some professional or semi/pro expertise in the area of indebtedness other than experience in dealing with your own personal debt.

Is this true in every state?

Can these 3rd party debt collectors report to credit agencies; in effect double down, reporting the same debt that has already been reported?

How can one find out if the 3rd Party bought the debt or is hired to collect the debt?

A link that would answer these questions would be sufficient.

I have researched this subject in the past and never came across this; can you provide a link that specifically addresses this? It would be greatly appreciated.

[suijuris]

But debt collectors know people don’t know this. Nevertheless, if people demand to see the original debt instrument, note or agreement, the debt collector can’t produce it because it was settled the moment they bought it.

Correct but you need to take it one step further. When a third party debt collector sends you a notice...ALWAYS respond in writing via certified mail that you deny the debt and demand to see the original debt instrument with your signature! Do not let the third party debt collector's demand letters go without a response. Several demand letters without a response can be construed as acceptance or acknowledgment of the debt.