Consumers get confused when a company they’ve never heard of contacts them about a debt they supposedly owe, and may not have a record of. In many of these situations, a debt collector has purchased your debt from the original creditor. But there are protections for consumers: In Maryland, both federal and state laws set clear limits on what debt buyers can and cannot do.
Debt buyers often purchase accounts in bulk for pennies on the dollar. These portfolios can include thousands of debts, sometimes with limited documentation or outdated information. As a result, mistakes are common, and consumers may find themselves facing collection attempts for debts that are inaccurate/inflated, or even not theirs at all.
What Happens When a Debt Collector Buys Your Debt
When a debt collector buys your debt, they essentially step into the shoes of the original creditor; this means they now attempt to collect the full balance, even though they may have paid only a small fraction of the original amount.
However, buying a debt doesn’t give collectors unlimited authority. Debt buyers must still follow federal and Maryland consumer protection laws. They must be able to demonstrate that they own the debt and that the amount they are attempting to collect is accurate.
In many cases, debt buyers rely on limited information, such as spreadsheets or partial records, rather than full account documentation. It’s a numbers game for them, and that is where problems often begin.
What Debt Buyers Can Legally Do in Maryland
When a debt collector buys your debt, they may take certain actions, provided they comply with the law. For example, they can contact you by phone or mail to request payment. They may also offer settlement options or payment plans.
Debt buyers may also file lawsuits to collect debts they believe are valid. In fact, many debt buyers operate by filing large numbers of lawsuits, sometimes assuming consumers won’t respond. If a consumer fails to respond to a lawsuit, the debt buyer may obtain a default judgment without fully proving the case. And, if the debt is valid and properly documented, debt buyers may also report the account to credit bureaus.
What Debt Buyers Cannot Do in Maryland?
Even though debt buyers have certain rights, they also face clear restrictions. When a debt collector buys your debt, they cannot harass/threaten, or intimidate you. Repeated calls at all hours of the day and night, aggressive behavior, or misleading statements may violate consumer protection laws.
Debt buyers cannot misrepresent who they are or pretend to be attorneys, government agencies, or law enforcement. Debt buyers cannot disclose your debt to friends, family, or coworkers.
Importantly, debt buyers cannot demand payment without verifying the debt. If they cannot provide documentation showing the original creditor, account history, and balance, that’s a major red flag.
Legal Lines Debt Buyers Often Cross
When a debt collector buys your debt, problems can arise due to incomplete or inaccurate information. Some of the most common issues include attempting to collect debts that are too old to be legally enforced, pursuing the wrong person, or inflating balances with questionable fees and interest. Debt buyers may also rush consumers into making payments or threaten legal action without providing proper documentation.
Why Understanding Your Rights Matters
When a debt collector buys your debt, it doesn’t automatically mean you owe the money; debt buyers must still prove their claims and follow the law. Understanding your rights can help you recognize when a collection effort crosses the line.
If a debt buyer in Maryland is harassing you, you don’t need to defend yourself alone. Whether it’s wrongful debt or intentional harassment, experienced attorneys will ensure rights are not being infringed upon without consequence.