Debt collectors routinely use Bills of Sale to claim ownership of your debt, but here's the truth: a Bill of Sale is just a receipt for a portfolio transaction, not an assignment of your specific debt. Just the definitions alone of each term can be the key to getting your case dismissed.
When examining a debt collector's Bill of Sale, look for these five weaknesses that can destroy their case: Forward Flow Agreements (most Bills of Sale are actually purchase agreements, not assignments), lack of assignment language (no clear "assignor to assignee" terminology), legal disclaimers stating "no warranty of title or enforceability," vague buyer/seller identification (you can't tell who actually owns what), and missing assignment requirements (no specific account details, signatures, or dates as required by state law).
In my experience, the most damaging evidence comes from the debt collectors themselves: many Bills of Sale explicitly state they are "executed without recourse" and include disclaimers like "no other representation of or warranty of title or enforceability is expressed or implied." This language essentially admits that even the seller doesn't believe the debt chain of title is valid. That kills their exception to the Hearsay Rule too.
Your State Statute of Frauds laws require true debt assignments to be in writing, signed by the assignor, detailed as to what's being assigned, and properly executed under state rules. Most Bills of Sale fail these basic legal requirements, giving you powerful grounds for dismissal motions based on lack of proper assignment. I have successfully done it and you can to. Go get 'em.
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