The biggest difference between novation vs. assignment has to do with liability. With novation, both benefits and liabilities         are transferred to a new party. 

     The biggest difference between novation vs. assignment has to do with liability. With novation, both benefits and liabilities         are transferred to a new party. With assignment, the original party may still retain liability even though they no longer               receive any benefits from the contract.

What Are Assignments?

    When one person transfers a benefit or an interest to another person, this is known as assignment. The person doing the             assigning retains the burden outlined under the original contract. This means if the assignee does not hold their                         responsibilities, the assignor may be liable. To protect themselves from liability, many assignors request that the assignee             provide an indemnity.

       When an assignment takes place, you are giving a third party some rights to a contract while retaining the contractual                obligations. Assignments are common for large businesses that own and operate subsidiary businesses. For example, you            may want the parent company to handle all contractual obligations but have payments made to the subsidiary company.            A deed of assignment would be used to achieve this goal.

        It's important to understand that assignments do not invalidate the original contract, and they also do not create new                agreements. In some cases, an assignment can be made without obtaining approval from all parties named in the original          contract. Usually, providing notification to the other party is enough to allow the assignment to move forward

How Assignments Work?

     Once an assignment has taken place, the incoming party will receive benefits from the original contract and will be able to          make sure their rights are enforced by bringing a lawsuit against the assignor. It is impossible to assign obligations,                    meaning the original party will still be responsible for upholding their responsibilities to the other party.

        In most cases, the assignee will assume responsibility for performing the contract, and the assignor will be indemnified               against breaches of contract. However, the assignor is still responsible for any breaches or performance failures that                   occur before assignment has taken place. Assignments are very common in construction contracts, particularly in relation             to collateral warranties.

        For example, the person funding the construction project may want the developer to make an assignment to any                        designers or contractors that will work on the project. This ensures that the funder will benefit from the project and will              also be protected should the project fail to be completed. 

Assignment Provisions

         In some situations, contracts will expressly prevent assignment or will include certain qualifications that must be met                   before assignment can occur. For example, the contract may require that both parties consent to assignment.

        Some other assignment qualifications that may be added to a contract include the following:

• The right of only one party to make an assignment.
• Restrictions on which contractual rights can be assigned.
• Limitations on how many assignments can be made, especially for collateral warranties.
• Restricting assignments to a person or class of people listed in the contract.

What Is Novation?

     When there is an agreement between three parties to transfer contract rights from an original party to a new party, this is          known as novation. During novation, contractual responsibilities and rights will be transferred to a third party. This differs            from assignment, where only rights are transferred.

      Novation commonly occurs when a business is sold or during a corporate takeover. When a corporate takeover occurs,                novation can allow contracts to be transferred from one company to another. This allows the company performing the                takeover to continue the operations of the company that has been purchased.

      You must use novation if your goal is to transfer the responsibilities of a contract in addition to the benefits. While some             people try to claim novation when facing liability, establishing this transfer is very difficult.

Procedure for Novation

      When novation occurs, the original contract is terminated, and a new contract takes its place. In this new contract, the third         party will assume the same obligations as the parties listed in the initial contract. Neither past burdens or rights listed in           the original contract are canceled by novation. The new contract must include consideration. This means the new party               must pay a price for being novated into the new contract. All three parties have the ability to avoid consideration by                 documenting the novation in a signed deed.

        If you need help understanding novation vs. assignment, you can post your legal needs, questions or concerns to 

        Creditable Advice LLC at [email protected] or reach one of our trusted specialist at (917)- 275-7989

•  Congress made its purpose in enacting the FDCPA explicit: "to eliminate abusive debt collection practices by debt collectors, to insure that those debt collectors who refrain from using abusive debt collection practices are not competitively disadvantaged, and to promote consistent State action to protect consumers against debt collection abuses." 15 U.S.C. § 1692(e). Section 1692f(1) on which  provides:

  A debt collector may not use unfair or unconscionable means to collect or attempt to collect any debt. Without limiting the general application of the foregoing, the following conduct is a violation of this section:

  (1) The collection of any amount (including any interest, fee, charge, or expense incidental to the principal obligation) unless such amount is expressly authorized by the agreement creating the debt or permitted by law.

• A "consumer" includes "any natural person obligated or allegedly obligated to pay any debt." § 1692a(3). A "communication" constitutes "the conveying of information regarding a debt directly or indirectly to any person through any medium." § 1692a(2) (emphasis added). 
  

• Nonetheless, the FDCPA does not contain an exemption from liability for common law privileges. "[C]ommon law immunities cannot trump the [FDCPA]'s clear application to the litigating activities of attorneys," Sayyed, 485 F.3d at 231, and, like the Fourth Circuit, we will not "disregard the statutory text in order to imply some sort of common law privilege," id. at 229; see also Hartman v. Great Seneca Fin. Corp., 569 F.3d 606, 615-17 (6th Cir. 2009). 

• A communication, however, is "the conveying of information regarding a debt" and is not limited to specific requests for payment. § 1692a(2).
  

Let's look at some of these case listed below to answer the question as to why lawyers are debt collectors:

• Jerman v. Carlisle 559 U.S. 573 (2010) Cited 589 times 4 Legal Analyses [Holding  that attorney pursuing mortgage foreclosure on behalf of mortgagor was subject to FDCPA as a debt collector].

• Heintz v. Jenkins 514 U.S. 291 (1995) Cited 956 times 7 Legal Analyses [Holding that "a lawyer who 'regularly,' through litigation, tries to collect consumer debts" is a "debt collector" under the Act].

• McLaughlin v. Phelan Hallinan & Schmieg, LLP 756 F.3d 240 (3d Cir. 2014) Cited 94 times 2 Legal Analyses [Holding that sending a letter was an attempt to collect a debt where the letter stated the amount due and that the sender was a “debt collector attempting to collect a debt”].

• Piper v. Portnoff Law Associates, Ltd. 396 F.3d 227 (3d Cir. 2005) Cited 166 times 1 Legal Analyses [Holding that attorneys who pursued debt collection litigation were "debt collectors" subject to the FDCPA].

• Campuzano-Burgos v. Midland Credit Mgmt 550 F.3d 294 (3d Cir. 2008) Cited 179 times [Stating "[u]nder the [FDCPA], attorney debt collectors warrant closer scrutiny because their abusive collection practices "are more egregious than those of lay collectors" and noting that attorneys have privileges such as the ability to file suit not applicable to lay debt collectors].

• Crossley v. Lieberman 868 F.2d 566 (3d Cir. 1989) Cited 135 times [Relying on volume of attorney's mortgage foreclosure actions to show he was a debt collector].

• Rosenau v. Unifund 539 F.3d 218 (3d Cir. 2008) Cited 407 times [Explaining that "both common sense and case law confirm . . . that the categories of `debt collector' and `attorney' are not mutually exclusive"].

• Barbato v. Greystone All., LLC CIVIL ACTION NO. 3:13-CV-2748 (M.D. Pa. Mar. 30, 2017) Cited 3 times[Failing to distinguish between the two definitions and applying an exception inapplicable to the "principal purpose" definition].

• Allen v. Lasalle Bank 629 F.3d 364 (3d Cir. 2011) Cited 155 times 1 Legal Analyses [ Holding that attorneys are considered debt collectors and, therefore, are covered under the FDCPA regulations]. 

All of these cases have addressed the fact that lawyers are in fact debt collectors and can be held liable for their actions in court and even out of court. So if you get a letter from an attorney-at-law attempting to collect a debt upon a clients behalf, then review these case listed about and see if some of the fact within each one can help you.  

• The (pre-default) creditor itself is excluded from the definition of "debt collector" unless he “in the process of collecting his own debts, uses any name other than his own which would indicate that a third person is collecting or attempting to collect such debts.” 15 U.S.C.§1692a(6) . Illustrative of the type of conduct which may result in a creditor being treated as a“debt collector” are Maguire v. Citicorp Retail Services, Inc., 147 F.3d 232 (2nd Cir. 1998)(Citicorp Retail Services sent out letters under the letterhead of "Debtor Assistance" to collect private label credit card debts); Catencamp v. Cendant Timeshare Resort Group -- Consumer Finance, Inc., 471 F.3d 780 (7th Cir. 2006) (creditor CTRG used name “Resort Financia lServices” on collection letters); and Nielsen v. Dickerson, 307 F.3d 623 (7th Cir. 2002) (creditor arranged for attorney to send out letters to induce communication with creditor’s own collection department on attorney letterhead for small sum per letter).
• Creditors may become "debt collectors" by using names in collecting their debts which falsely suggest the involvement of third party debt collectors or attorneys. The simplest situation covered by the "other name" exception of §1692a(6) is that where creditor ABC sends its debtors letters which demand payment in the name of XYZ Collection Agency, XYZ either being a totally fictitious entity or a real entity which has no significant involvement in the actual collection of ABC's debts. On its face, such conduct makes ABC a "debt collector" under §1692a(6) and simultaneously violates the prohibition against deceptive collection practices,§1692e. Numerous pre-FDCPA cases held that this practice violated §5 of the FTC Act. Wm. M. Wise Co. v. FTC., 246 F.2d 702 (D.C. Cir. 1957); In re Teitelbaum, 49 FTC 745 (1953); In re Bureau of Engraving, Inc., 39 FTC 192 (1944); In re National Remedy Co., 8 FTC 437 (1925); In re B.W. Cooke, 9 FTC 283 (1925); In re U.S. Pencil Co., 49 FTC 734 (1953); In re Perpetual Encyclopedia Corp., 16 FTC 443 (1932).
  
• The FTC has stated that a creditor is using a name "other than [the creditor's] own" if the creditor is using a name which on its face it "would indicate that a third person is collecting or attempting to collect [the creditor's] debts" and no disclosure is made of the relationship between the name used in dealing with the consumer prior to default and the name used in attempting to collect after default, even if the creditor lawfully owns the name used to make collection. Sept. 19, 1985 opinion letter. The FTC commentary on the FDCPA states:
  
• Creditors are generally excluded from the definition of "debt collector" to the extent that they collect their own debts in their own name. However the term specifically applies to "any creditor who, in the process of collecting his own debts, uses any name other than his own which would indicate that a third personis" involved in the collection.
  

 A creditor is a debt collector for purposes of this act if:

• He uses a name other than his own to collect his debts, including a fictitious name.
  
• His salaried attorney employees who collect debts use stationery that indicated that attorneys are employed by someone other than the creditor or are independent or separate from the creditor [the same should apply to salaried nonattorney employees, as herein]. . . .
  
• The creditor's collection division or related corporate collector is not clearly designated as being affiliated with the creditor; however, the creditor is not a debt collector if the creditor's correspondence is clearly labeled as being from the "collection unit of the (creditor's name)," since the creditor is not using a "name other than his own" in that instance. (Emphasis added.)
  
• A creditor collects its own debts by using a different name, implying that a third party was the debt collector, either (a) when the creditor uses an alias, or (b) when the creditor controls all aspects of the collection effort. E.g., Sokolski v. Trans Union Corp., 53 F.Supp. 2d 307, 312 (E.D.N.Y. 1999); Flamm v. Sarner & Associates, P.C., 02-4302, 2002 WL 31618443 (E.D.Pa., Nov. 6, 2002).
  

1. WHO IS A “DEBT COLLECTOR”

• Basically, an FDCPA “debt collector” includes anyone who regularly collects debts after they have allegedly become delinquent as agent for their owner, as well as anyone who acquires debts for their own account after they have allegedly become delinquent. Kimber v. Federal Financial Corp., 668 F.Supp. 1480 (M.D.Ala. 1987); McKinney v. Cadleway Props., Inc., 548 F.3d 496 (7th Cir. 2008).

• The above conclusion is based on the definition of “debt collector” is found in 15 U.S.C. §1692a(6), which must be read together with the definition of “creditor” in 15 U.S.C.§1692a(4). A “creditor” is “any person who offers or extends credit creating a debt or to whom a debt is owed, but such term does not include any person to the extent that he receives an assignment or transfer of a debt in default solely for the purpose of facilitating collection of such debt for another.” A “debt collector” is “any person who uses any instrumentality of interstate commerce or the mails in any business the principal purpose of which is the collection of anydebts, or who regularly collects or attempts to collect, directly or indirectly, debts owed or due or asserted to be owed or due another. Notwithstanding the exclusion provided by clause (F) of the last sentence of this paragraph, the term includes any creditor who, in the process of collectinghis own debts, uses any name other than his own which would indicate that a third person is collecting or attempting to collect such debts. . . . The term does not include– (A) any officer oremployee of a creditor while, in the name of the creditor, collecting debts for such creditor; . . . . [and] (F) any person collecting or attempting to collect any debt owed or due or asserted to be owed or due another to the extent such activity . . . (ii) concerns a debt which was originated by such person; (iii) concerns a debt which was not in default at the time it was obtained by such person . . . .”

Under the FCRA 15 U.S. Code § 1681s–2 - Responsibilities of furnishers of information to consumer reporting agencies.

Creditors try to get out from there responsiblities of what they are physically reporting about you upon your credit profile, by hoping that you won't be able link them to the current situation.

Now I am here to tell you that under the FCRA 15 U.S. Code § 1681s–2, has been set into place to hold them 100% legally accountable for their actions upon your credit. All you have to do is use the "CRA" againts them, by asking them both for full validation of the debt via letter. 

Answer: A Qualified Written Request, or QWR, is a written correspondence that you or someone acting on your behalf can send to your mortgage servicer. ... The purpose of a QWR is to dispute an error relating to the servicing of your mortgage loan or to request information about the servicing of your mortgage loan. A QWR can also be called a Notice of Error or a Request for Information.

You see with a Qualified Written Request, or QWR, is a written one, you as a debtor can use this to fully validate on a pacific types of debt and see which of your creditor are fully complying with the laws and which one's are not.

But what must the creditor provide by way of documentation? At a minimum, it must produce:

• A copy of the original written agreement between the parties, such as the loan note or credit card agreement, preferably signed by you.
• If the account has been sold to another creditor, then that creditor must prove that it has the right to sue to collect the debt. This usually means producing proof that the debt was assigned to it. Often such proof will be a bill of sale, an “assignment”, or a receipt between the last creditor holding the debt and the entity suing you.

Most people would be appalled at the thought of a total stranger calling out of the blue and demanding money. It is absolutely absurd. But this is what occurs when a junk debt buyer demands payment for debt and; unfortunately, many consumers pay without questioning the validity of the debt.

Debt validation provides a way for consumers dealing with debt collectors to verify the accuracy of a debt. But the question of what constitutes proper debt validation remains unclear. A few old credit card statements is insufficient proof. Even an original contract does not necessarily mean a debt collector has a right to collect a debt.

You can't dispute accurate information on your credit reports and expect the credit bureaus to remove it. However, you can hold the credit bureaus liable under the Fair Credit Reporting Act if they fail to observe the time limit on your debt.

By law, negative information should drop off your report after seven years. A bankruptcy may remain on your report for up to 10 years.

If you see a debt that's real on your report, but is older than seven years, you can dispute the debt to the credit bureaus and demand that it's removed. You can also fight back against a debt collector that is threatening to sue you for the debt if it's past its statute of limitations.

The legal expiration date on the debt should give you a bulletproof defense of any lawsuit that's filed after the statute ends. That strategy only works, however, if you didn't accidentally re-age the debt after talking with a debt collector, says Paul Stephens, director of privacy and advocacy at Privacy Rights Clearinghouse.

"There is a big problem with this particular issue," says Stephens. Debt collectors often sell accounts to one another and sometimes the debt collectors will report inaccurate timelines, causing the debt to be reported longer than it should. "That's what's called re-aging of debt," he says. Under the Fair Credit Reporting Act, this shouldn't happen and you have the right to fight it.

However, if you receive a call from a debt collector and agree to pay part of an expired debt, you could potentially restart the clock on the debt's statute of limitations and undermine your ability to successfully fight back.

"Debt collectors can keep calling you and hounding you," says Stephens. "They may get you at a weak or vulnerable moment and at that point in desperation you may make a promise to get into a payment plan or potentially acknowledge the debt." At that point, the debt collector can sue you -- and potentially win a judgment against you -- for a debt that you should have been able to scrub from your credit history for good.

Now when it comes to dealing with your credit situation/ fight, did you know that there are more then one way to fight back! Many people do not know that besideds the credit bureau. You can truly also use your current states Division Of Consumers Affairs Office, or the (BBB) the Better Business Bureau to uptain facts on a company/ creditor, aswell as report them. So don't think that the fight is just over do to the fact that the creditor, nor collection agency dose not want to comply with law. You can always do damge to them in more then one way! You have unlimted power right at your finger tips.

Hey, now here is something funny that you should know. Just as there are ID Theft every 2 seconds, so two are there businesses / people that are called credit sharks. These typies of companies just put unverifiable, unjust - information on your credit report, and due to the fact you may not even know it. It may be a collection company, or a creditor, or even your next door neighbor. How stange is that ? The point that we are trying to make is that you should nevery take anyone's word on your credit, when they state that you owe a debt. It is 100% there responsibility to provide you proof, before they can collect on any / all debts that they state you owe. Please be aware that you rights as a consumer, and through federal laws that they must comply with. So don't let these credit sharks bully you into thinking that you have no way out / or no other alternative.

Now here is on important fact that I would like everyone to know. Here it is that the creditors / collection agencies / credit bruears are designed to keep you in debt. No matter what color, race, or religion you are they still want to keep you in what we call in the credit repair world Debt Entrapment status. It's to were they want you to feel like you can never get out of debt, nor can you get your life back on track. Well Creditable Advice LLC is here to inform you that what they are doing / stating to people is a 100% lie. Yes you can fight back using the laws that are set in place by our US goverment. The other thing you should also know is that it is your right to force any body who places any item / item's on your credit report to fully verify / validate it. If they don't comply then you have the grounds to take then to court........! How dose that sound?

Now this an interesting fact did you know that if you use a free credit to check your credit with Credit Karma, other free websites, or with free services from the banks. What they are designed to do is to one keep you up to date with current credit score, and show you if any thing should fall off of your report.

Now here is what is interesting about this fact, most people don't know is that it keep's bring down there credit score due to the simple fact of you seeing inquiries showing up on your credit reports.

Also due to the dates that are being reported through the credit bureaus you loose points on your score as well. So now due you think that Credit Karma / the banks are really out there to help you, or are they just doing more damage then good? Hum I wonder ?

Hey, did you know that when you send out a dispute letter to a Creditor / CRA / Collection Agency, they waste time, and send you a stall letters designed to cover them. When I state this, I mean that they are not interested in helping you remove items negitive items from your credit report. It is due to the facts that they make money off of reporting your credit information. These CRA are separate enttities. They are not goverment own, and make about $4 billion dollars selling your information. Question, what do you think about this? Well, I am hear to inform you that the time to act is now, using the laws that were set to protect you, from there waste of time style. 

Now there are many way's that you can fight back, just as the collections / creditors do. You see when you don't pay your debt for 6 months or longer they are either in a hurry, to write you off called a (Charge Off). Or they want to file court paperwork, and take you to court to get there money! So how about you, what is your way of fighting right back? I have asked people this, and have do some good hard research regrading this matter, and guess what I found? You have the same power as they do when they place inaccurate information on your credit report. You can take them to court, just like they would to you. Hey use the same weapon that they use on you. If they place inaccurate information in your credit report, or just report it incorrectly, and you gave them 3 tries to get it right. Then you are impowered to use this weapon "(The Court System)"! Just like they would to clean up your credit report!

Hey, now here is an interesting fact. Do you know that every time you sign a credit appication, or an auto loan, that there is this little fine print that no one reads. What I mean when I state this is that if you have not paid your credit card bill, or for your autombile within 6 months or longer. That is when this clause kick's into place. It gives the creditor the full right to either file an insurance claim, or charge you off, and write you off on there taxes as a bad debt. Now they can also get paided off even if you don't pay the current debt. So in the mean while you are stuck with a negitive credit marking on your credit report for up to 7 years. They are still get paid off. Now how fair is that.?  

Hey here is a funny fact that you didn't know about! Did you think that it is truly fair that a creditor / a collection agency goes right into your current credit report, and change the way that they reporting to the credit bureaus regarding your credit. Just right after they report an item on your report one way they go right back into your credit report, and report it another. Now what you may be asking is what I am talking about when I made this statement, and what I am saying is that if you get a car reposed, or a credit card charged off, or just plainly pay a debt of to a collection agencies. They still will not fully report it 100% accurate. You have follow-up with the 3 main credit bureaus, and file a dispute regrading this information.

You see it goes against the laws that are out there to protect you from them reporting one way on a credit report then report the same item another. Also by them doing this little trick. It starts over the SOL from day 1. So this Item you will be hit for 14 years insteady of 6 years. How unfair is that? That's why I say always check on your credit report as soon as you can, because creditor / collection agencies / and credit bureaus will always do what is easiest for them, but not what is best for you...!  

Did you know that debt validation is one of the most powerful tools when it come's to credit repair! You can send one of these letters off to a collection agency / original creditor, and they must comply by law: ( FCRA/ FDCPA). Creditor / collection agencies must get back with you within 30 day's of receiving your request to validate the debt, or they will be in failure of the laws provided. We used one of these letter's on a client's current credit account, and scared the collection agency right off.

I guess they took one look at the client's request for validation, and were even too scared to place a marking on this client's credit report or they just didn't have all the information , See how power you have when you use the laws put in place! 

Did you know that many people think that there is no hope when it comes to credit problems. Whether it's rasing their credit, removing negative item's off of your own credit report, or just seeing pass mistakes on your report gone! I here to inform you that isn't so. Many of this item's can be removed from one's credit report if they are willing to follow a few easy steps! My company has been built to help show people just like myself how they have the tool's,and power to fight right back. Creditor's, nor collection agencies, or credit bureau have no right to place false or miss-leading info about you as a individual. So my question to you today is why are you still leting them post it?

Now here is food for thought, that in order for any collection agency / creditor to collect on a debt at all they must 1st have a wet-ink signed contract by you in there possession. No statement from the creditor / bank that hold's the current loan or a copy on file that they can just get online, and print out will be accepted in court, nor should it be accepted by you either. Under the Fair Credit Reporting Act Section 609 (FCRA) the bank / creditor / collection agency are required to have that documention by law. They are just hoping that you do not know this law so that way they can pull one over on you, and I. How unfair is that? So the next time you recive any letter from someone that states you owe money on an account, just remenber the FCRA is a way make them prove that you are the one who owes the debt!

Now here is an interesting topic for you to hear about. "The Trickee Collection Agencies "! That is what they need to be call, due to the fact that they have more games with them then a complete pack on domino's. You see what collection personal do is that they will call you at all hours during the day, then make up lie's like, we have sent you out paperwork for you to validate the debt, knowing that in fact they did not. Threaten you by stating that if you don't pay this balance off that this marking will be placed on your credit report, and to top all of that off even force you to go to court, and they really hope that you do not show so this way they can get a judgment against you to cease all of your fund's / asset's. Will I am hear to tell you that the same trick's that they use on a consumer, is the same tricks you can use right on them!

1. They must always send you a invoice for validation. If they do not then you have within you right to asked them to stop calling you until they do send it, and it is in the palm of your hands.

2. Always record the conversation, or take the time to take notes, see they are in a hurry to collect on a debt so that they may get paid. Well I'm here to inform you that you have the power, take control of the situation, and don't let them rush through anything. Remember, they have to play by your rules, not by there's. So if they refuse to cooperate then either ask for a supervisor, or just plainly hang up the phone. Once again you hold the power.

3. If they send you out court documents, stating that it's from an attorney, or from the courts, stop right there, and take a little time to call the court's / attorneys office just to get a clarification on all the details that pertain to the matter at hand.

You see there are so many things that you can find out, and due to protect yourself from these games that they play. All you need is the power which is inside you. Show collection that they can't just push you around, they must obey the laws of your state as well....!