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Hawaiilawfan

Rules for written assignment for real property.

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Hello,

 

My question concerns what is assignable when a company goes out of business, and another person, or business jumps in to say that they are the new entity, and the collector for consumer accounts made with the original business. I want to protect myself from any scam.

 

I am a consumer, who entered into a small lease agreement of under $ 2,000. on or about Nov. 26th 2016. This was with a Hawaii branch of a company, who has their main corporate office  in TX. I had done business with this same company twice before, and I was aware that this company had downsized their stores during 2014-2015, but there was not any information given to customers on a possible change of ownership. 

 

Every thing was going well until this month Feb.1st 2016, when I received a call from someone who told me they now have my account, and are collecting for the other business. They wanted me to pay by phone for my monthly payment. This call took me by surprise, and I have not made any payment over the phone to date. After all, I thought it could be anyone asking for payment; but would the payment be going towards my payment balance, or into someone pockets.The payments in question add up to less then $2,000. total, and had I been working with the original business the total would have been spread over the next 12 months.

 

To date, other then getting phone calls from these different people who say I owe them the money, because the other business is no longer in town; I have not received any correspondence in writing, that would substantiate a company taking over the first one, nor any letter detailing what my rights are. The only document I have, is the original contract from the closed store, which has an agreement to arbitration clause. Should I insist on arbitration, or ask for some other type of clarification? I would think that the parent company of the one I signed with which is in TX. would be interested in a smooth transition, and not leave their loyal customers up in the air with no communication.

 

I would appreciate, any response which could assist me for a positive outcome.

 

Sincerely,

HawaiiLawFan

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I am a consumer, who entered into a small lease agreement of under $ 2,000. on or about Nov. 26th 2016.

 

Wow, you're a time traveler.

 

 

Every thing was going well until this month Feb.1st 2016, when I received a call from someone who told me they now have my account, and are collecting for the other business. They wanted me to pay by phone for my monthly payment. This call took me by surprise, and I have not made any payment over the phone to date. After all, I thought it could be anyone asking for payment; but would the payment be going towards my payment balance, or into someone pockets.The payments in question add up to less then $2,000. total, and had I been working with the original business the total would have been spread over the next 12 months.

 

To date, other then getting phone calls from these different people who say I owe them the money, because the other business is no longer in town; I have not received any correspondence in writing, that would substantiate a company taking over the first one, nor any letter detailing what my rights are. The only document I have, is the original contract from the closed store, which has an agreement to arbitration clause. Should I insist on arbitration, or ask for some other type of clarification?

 

Hard to believe you haven't thought of this:

 

1 - Call the person you originally did business with and ask what happened. Get documentation of the change if it did happen.

 

2 - If that person or business is no longer available, call the new people who want your money and insist on documentation of their ownership, or authority to collect, before you pay them anything.

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It's quite possible for a company to assign or sell debt to another company (often a collection agency). Based on the information you provided, it's quite possible that happened in your case, but you are correct to be careful. I think the consumer information at the Federal Trade Commission regarding debt collection practices and consumer rights will serve you in good stead. Start with this webpage and spend some time familiarizing your self with your rights and obligations.

 

http://www.consumer.ftc.gov/articles/0258-fake-debt-collectors

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My question concerns what is assignable when a company goes out of business, and another person, or business jumps in to say that they are the new entity, and the collector for consumer accounts made with the original business.

 

As phrased, this doesn't make a ton of sense.  However, one person/entity certainly may assign to another person/entity the right to collect a debt.

 

 

 

The only document I have, is the original contract from the closed store, which has an agreement to arbitration clause. Should I insist on arbitration, or ask for some other type of clarification?

 

As far as arbitration, do you dispute the debt?  If not, what is there to arbitrate?  Beyond that, you certainly should insist on documentation that the person/entity seeking payment has the legal right to do so.

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Hello,

My question concerns the timeline for notification of assignment involving real property.

Business #1. Left town,in one day closed the store,and let go of their employees w/o notice. I was a customer with a contract to rent to own. I did not receive any call,or letter telling me of any change. When I called their corperate office which is located in another state they said their company is no longer doing business here.They also said that if I needed service on anything purchased from them, they did not know of any recourse.

One month later, I am contacted by business #2. A person states that she is a former employee of business #1. Pay me the payment you owe business #1. We bought them out so you owe us.

My response was I am not sure what is going on, but where is my notice of assignment. To date I have been called and I have asked about the assignment issue, with no answer from them, except to believe them and pay up.

In the interim between Jan.to May 2016, I sent a letter disputing that I owe business #2. For the account with business #1. To which they sent a request to make payment.

I have been a costumer of business #2. For thirteen years and had a good business relationship with them. About a month ago I entered into a new contract with them fortwo items, iten one I took delivery of on that date, the second item, a stove was supposed to be delivered on the next Weds. after I signed the contract. The stove was not delivered because one of the employees said wait a minute, you should never have been allowed to rent from us because you have an outstanding balance from us buying your contract from business #1.

My position is I have a valid contract for the two items from business #2. I have made all my payments on time, I am in possession of one item and they should have delivered the stove in a timely manner since I am paying each week for it. Business #2. Said over the phone yesterday that they are not going to take anymore payments from me, and I will have to return the item I have in my possession.

I read my signed contract with business #2, and the contract can only be breached if I fail to make payment. Trying to get a higher up manager to speak with was not possible they said, so I am going with a witness today to try to make an in store payment on my account.

Please explain the right way assignment should go, and what I might do to correct this issue.

For research I did check with the licensing entity for businesses in my state, on the trasferable assignment issue. They said that business #1. Is listed as a off shore company. I don't know how this affects this issue, but they also said the business #1. Had done their tax payment in Feb.2016. These issues are complex to me, but as a consumer it feels like I am trying to get these businesses to practice good customer polices and they are opposed to it. I can go to small claims court over the breach of contract, but I will still need to know rules on assignment for real property.

Your thoughts on these issues are appreciated. Thank you.

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