Dirty Debts Sold Dirt Cheap

Dalié Jiménez

University of Connecticut School of Law

March 4, 2014

Harvard Journal on Legislation, Forthcoming

This Article uses a unique collection of contracts for the sale of consumer debts — e.g., delinquent credit card accounts — to examine the sale transaction. It finds that in many contracts, sellers disclaim all warranties about the underlying debts sold or the information transferred, sometimes as far as specifically refusing to stand by “the accuracy or completeness of any information provided.” The Article argues that the collection of consumer debts sold through these transactions is in violation of the Fair Debt Collection Practices Act’s prohibition against using deceptive or misleading representations in connection with the collection of a debt. After considering some potential explanations for why this illegal collection has gone on for so long, the Article proposes a regulatory and a market solution to the problem.

(This article was previously titled: Illegality in the Sale and Collection of Consumer Debts).

Number of Pages in PDF File: 60

Keywords: debt collection, debt purchasing, debt buyers, consumer credit, fair debt collection, FDCPA, consumer law, contract illegality, private law, Rule 11, sanctions, mislead

Accepted Paper Series

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Date posted: April 14, 2013 ; Last revised: April 14, 2014

Suggested Citation

Jiménez, Dalié, Dirty Debts Sold Dirt Cheap (March 4, 2014). Harvard Journal on Legislation, Forthcoming. Available at SSRN: http://ssrn.com/abstract=2250784 or http://dx.doi.org/10.2139/ssrn.2250784

Contact Information

Dalié Jiménez (Contact Author)
University of Connecticut School of Law ( email )
65 Elizabeth Street
Hartford, CT 06105
United States
860-570-5114 (Phone)
HOME PAGE: http://www.dalie.org
Feedback to SSRN

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