Creditwrench teaches the secrets of the debt collection industry and how to defeat their abusive practices without lawyers. We know how to win!
Thursday, August 09, 2007
Novation and bad message board information

Novation discussion

Bad information found on message boards

There are multitudes of message boards to be found on the internet and they are all filled with lots of information. Some of it good and some of it absolute junk that can lead you into really bad situations if followed. Therefore any and all information found on message boards must be considered to be false and misleading until you have checked it out for yourself.

There are really only a relatively few trustworthy web sites on the internet and those are always government owned or sponsored web sites such as those owned and operated by various state legislatures or by their court systems or federal government web sites.

That does not mean that I think that all government web sites and information is to be trusted explicitly because nothing could be further from the truth. Government too can be guilty of putting out false and misleading information to gain it's own ends as well but the law is the law and web sites that deal with law can be trusted much more than can the web sites of those who think they know the law when in fact they really have no understanding of it at all

Here is a prime example of the kinds of misinformation to be found on such message systems as

Originally Posted by desertrat View Post
This may be from out-dated legal theory, but my understanding is that the assignment or transfer of a debt from an OC to a CA represents something called a "novation".
Novation is a term used in contract law and business law to describe the act of either replacing an obligation to perform with a new obligation, or replacing a party to an agreement with a new party. In contrast to an Assignment , a novation must be agreed upon by all the parties to the original agreement [1]. The obligee, the person receiving the benefit of the bargain, must only be given notice. The obligor, the party making the novation, must only make the new obligor aware and receive consent from the new obligor. A contract transferred by the novation process transfers all duties and obligations from the original obligor to the new obligor.
As a party to the original contract, it's my understanding that you must agree to any substantive changes in the terms of that contract in order for it to be effective, including a transfer to a CA.
There is no new contract or change in the contract when you default and it is transferred to a 3rd party debt collector because you agreed to that provision in the original agreement or contract. Therefore, there is no novation.
The law gives you 30 days after you receive notice of the novation to dispute it. If you don't (ie., you default), or you tell somebody with the CA that you agree, or that you'll pay, or you DO pay them "just a dollar", you've just AGREED to the change in terms.
No, none of the above is true. The only thing that might change in some states is resetting of the State Statute of Limitations. In some states payment of money will reset the SOL but not in most states. It all depends on
the specific state law.
A timely dispute supposedly prevents the changes in the contract from being enforced. Anything else means you've agreed.
Wrong again. That is what we get for listening to the garbage legal theories to be found on most message forums. If it isn't one thing it is the next.
From all you've said in your first post, you've already agreed this debt was yours. You've even paid it in full!

Why are you even thinking of asking THEM to prove to you what YOU YOURSELF have ALREADY ADMITTED through your actions???

Let sleeping dogs lie. The only possible outcome of your actions can be to make things worse.
Now that is good advice.
Links to this post:
Create a Link