Bill of Sale Evidence Issue

Ohio courts have recently instructed debt buyers on the documentation necessary to properly "allege and prove" the chain of title for credit card account collection matters. In sum, the account evidence must show the debtor's specific account as part of the bulk account transfer from the credit card company to the debt buyer.

Generally, debt buyers bring suit on an account from which they obtained through assignment or transfer from a credit card entity.  To show proof that it is the holder and owner of that account, the debt buyer will often present a "Bill of Sale" or "Bill of Transfer" that is executed by the parties involved in the transfer.  Said "Bill" will reference an "Exhibit" listing the accounts being transferred.  However, often the Exhibit is not provided.  

Several recent court decisions have stated that a debt buyer show the "Exhibit" that includes the debtor's specific account. These decisions are in tune with general principles that to obtain a judgment we must prove, through the evidence we are presenting, all the elements of a contract claim, including ownership, performance by the complaining party, breach and damages. Indeed, showing that a specific account or debt is included is applicable to any transfer or assignment, not just debt buyer transfers.
 
Therefore, going forward debt buyers should provide a redacted version of the “Exhibit” for each "Bill of Sale/Transfer" in the chain of title.  Further, to avoid challenges to the complaint, we suggest that the "Bill of Sale" and the redacted account listing “Exhibit” be attached to the complaint, and later authenticated by affidavit testimony when moving for default and summary judgment.  Failure to provide the "Exhibit" and other chain of title documentation may prevent judgment.
 
Weltman will keep you advised of further developments in Ohio with regard to this and other debt buyer issues.