One of the strongest defenses in a debt buyer lawsuit is challenging the plaintiff’s chain of title.
Debt buyers like Midland, Portfolio, LVNV, Cavalry, and Jefferson Capital purchase debts in bulk. They often lack complete documentation showing they own your specific account.
If they cannot prove ownership, they may not have standing to sue.
What Is Chain of Title?
Chain of title is the paper trail showing how the debt was transferred from:
Original Creditor → Buyer(s) → Current Plaintiff
The debt buyer must prove each transfer and show that your account was included.
Documents Debt Buyers Use
Debt buyers often rely on:
- Bill of Sale
- Assignment Agreement
- Purchase and Sale Agreement
- Affidavit of Sale
- Account schedule / data file
- Account statements
Common Chain of Title Weaknesses
✔ Generic Bills of Sale
Many bills of sale don’t identify your account.
✔ Missing Account Schedules
The bill of sale references a spreadsheet, but it isn’t produced.
✔ Missing Transfers
If the debt passed through multiple buyers, missing one link breaks the chain.
✔ Hearsay Affidavits
Affidavits may be signed by employees with no personal knowledge.
Step-by-Step: How Consumers Challenge Chain of Title
Step 1: Deny Ownership Allegations in Your Answer
Do not admit the plaintiff owns the debt unless you have proof.
Step 2: Use Discovery to Demand Proof
Request:
- all bills of sale
- all assignments
- account schedules listing your account
- complete statement history
Step 3: Demand Proof of Every Transfer
If the debt changed hands multiple times, the plaintiff must prove each transfer.
Step 4: Challenge Generic Bills of Sale
A generic bill of sale may not prove your specific account was included.
Step 5: Object to Affidavits Without Proper Foundation
Debt buyers must authenticate records properly.
What Happens If Chain of Title Is Broken?
If the plaintiff can’t prove chain of title:
- the case may be dismissed
- settlement leverage increases
- the plaintiff may be unable to win at trial
Bottom Line
Chain of title is one of the most effective defenses in debt buyer lawsuits. If they can’t prove ownership, they may not have standing.
