The Collection Agency Sent The Account Back To The Original Creditor
Despite what a letter may say (see example attached) about a debt collection agency "returning the account to the original creditor" - it's just not true. Should one receive a reply like the attachment, continue with the debt removal steps as usual until it is time to file suit against the collection agency who has been in contact. The debt collection agency still holds the debt. Legally (and logically) they cannot sell the debt back to the bank (only to other collection agencies). If the bank continued to service the debt AFTER claiming a loss to their insurance, that would constitute a serious amount of fraud since the bank has already been compensated for their "loss" via an insurance claim!
Even if the "company" is a legal team hired by the creditor, the US Supreme Court ruling in Bowen v. Needles Nat. Bank, 76 F. 176 (1896) is all that needs to brought before a court to prove that the credit lent was fraudulent and thus the contract is void ab initio (from the beginning). This is a law all banks violate, including numerous violations of contract law by both original creditors and debt collectors, as well all the laws a collection companies violates throughout the collection process. At any point in this "long line of fraud" one can bring any of these issues to the attention of the courts to void the contact (the debt).
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