Document Type


Publication Date

Spring 2014


consumers, creditors, bankruptcy, consumer law, due process, pro se, legal ethics, professional responsibility, role of judge, forgery, self help, default judgment, affidavit judgment, Maryland, District Court, sewer service, service of process, debt buyer, consumer debt, small claims, purchased debts, Purchase and Sale Agreements, Forward Flow Agreements, credit card, junk debt, representations and warranties, as is, pennies on the dollar, disclaimer, fraud on the court, data integrity


This article is reprinted from Communities & Banking. "The views expressed are not necessarily those of the Federal Reserve Bank of Boston or the Federal Reserve System. Information about organizations and upcoming events is strictly informational and not an endorsement."


Pursuant to secret purchase and sale agreements (also known as forward flow agreements), the accounts that banks sell to debt buyers are often sold “as is,” with explicit and emphatic disclaimers that the debts may not be owed, the amounts claimed may not be accurate, and documentation may be missing. Despite their full knowledge that the accuracy and completeness of the data has been specifically disclaimed by the bank, when they sue consumers, debt buyers tell courts that the information obtained from the bank is inherently reliable and accurate. In order to avoid a fraud on the courts, the contents of these purchase and sale agreements should be made public.

Publication Citation

25 Communities & Banking 20 (Spring 2014).


Banking and Finance Law | Commercial Law | Consumer Protection Law | Contracts | Law and Society | Litigation