You still need to comply with FDCPA as the owner of the debt. The increase of the Federal Homestead to $146,000 in 2010, combined with the implosion of houses prices has put a huge cloud over judgment collection efforts against real estate. I had a portfolio of a dozen small judgments that I have basicly abandoned, excepting one $20,000 judgment that I renew periocially in hopes that the debtor will win the lottery or something. But enforecement is State specific, you really need feedback from someone familiar with OH homestead exemption laws and practices, I am not.
I have the opportunity to buy a small number of judgments from a business near me in Ohio. These judgments were awarded by the small claims court and range from $250 to $2,000. The company holding them is a pool and spa business so I concluded that the debtors are probably home owners. A check of the county auditors records indicate that they generally are. I can buy them for around 20% of face value.
I have bought a couple of small judgments and have been awarded some via my mobile home business. (I?m a Lonnie Dealer.) I have collected on a few and I have also placed liens on real estate if the debtor owns any. At present I?m just letting the liens sit in place hoping to collect when the property is sold. I have not been aggressive in collecting because I have very little cost in the judgments and all of them carry an interest rate in excess of 10%.
If I carry through with my plan to buy these judgments I will most certainly become more assertive with my collection efforts. One concern I have is the Fair Debt Collection Practices Act. My research has shown that it applies to companies or persons who collect debt for others and not for the actual owners of the debt. If I purchase the debt from another party I?m pretty sure I?m now the owner. I Googled the FDCPA in Ohio and it pretty well mirrors the national act.
Not being knowledgeable on the FDCPA or being a legal researcher I?d like to solicit comments and opinions on my plan.
I would comply with FDCPA. Statute has some ambiguity in it. While I do not think it was intended to apply to holder of debt, the way it is written for both Fed and Ohio leave some doubt.
I have a young lawyer who uses his “spare” time to collect debts. While we have not bought any judgments, we are considering it. We do amass some judgements as follows: We do evictions (among other things) in Columbus/Franklin County area. We only charge $70 for eviction (plus filing fees) if we get to keep the judgment. Many landlords agree to this because the tenant is uncollectible for them - not worth paying to get the judgment, or to collect it. But for us such judgments have some value, even with deadbeats and small numbers. Basically, when lawyer on salary has some spare time, he gets on the debtors. While the judgments are in the company name and we have a good argument that FDCPA does not apply, we follow it anyway. Why invite a fight, or give debtor an extra argument, when we can follow it and collect anyway? Just my two cents.