09/04/2024
If you have credit card (or loan) debt, there is a good chance that it could have been securitized. What does this mean and how does it impact you?
When a lender, like your bank or credit card company, securitizes your debt, they bundle it with thousands of others and sell it to investors. This process can complicate the ownership of your debt, making it difficult for debt collectors to prove they have the legal right to collect from you.
So if you are being pursued or sued for debt, the question becomes whether the party pursuing you actually owns your debt? If they do not own your debt, then it questions their legal right to pursue you for something that they do not own.
To learn more about this topic I encourage you to read this article:
https://www.cfajournal.org/securitization-of-debt/ #:~:text=Securitization%20of%20debt%20can%20be%20defined%20as%20the
By understanding this process, you’ll be better equipped to challenge the legitimacy of the debt if a collector contacts you.
I'll be sharing more on how to see if your creditor tends to bundle and sell debt to investors and how this can give you leverage when it comes to debt collectors and lawsuits.
Definition Securitization of debt can be defined as the process of pooling multiple financial products of the same class and then marketing them and then sell them to another financial institution. So, the securitization of debt follows the same logic. A bunch of the same financial assets are pooled...
