Missouri Supreme Court – Because Chain of Title Deficient, Assignee lacked Standing to Sue on Debt

Last month the Missouri Supreme Court handed down a decision concerning a failure of proof in establishing chain of title on assignment of debt. The decision itself is unremarkable and you can read it here CACH v. Askew. The problem was simple – no testimony was proffered concerning the account being included in the prior assignee’s bill of sale, rather the trial court inferred the account was included in a “Schedule A” which should have been, but was not, attached to the prior assignee’s bill of sale.

A few years back I participated in a teleconference for ACA International explaining bill of sale forms and steps the industry can take to avoid these pitfalls. Contact ACA if you are interested in the presentation.

A big hat tip to my colleague Ralph Wutscher, Esq. at McGinnis Tessitore Wutscher LLP
in Chicago for alerting me to this decision.

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Donald Maurice provides counsel to the financial services industry, successfully litigating matters in the state and federal courts in individual and class actions. He has successfully argued before the Third, Fourth and Eighth Circuit U.S. Courts of Appeals, and has represented the financial services industry before several courts including as counsel for amicus curiae before the United States Supreme Court. He counsels clients in regulatory actions before the CFPB, and other federal and state regulators and in the development and testing of debt collection compliance systems. Don is peer-rated AV by Martindale-Hubbell, the worldwide guide to lawyers. In addition to being a frequent speaker and author on consumer financial services law, he serves as legal counsel to DBA International and as chair of the ABA's Bankruptcy and Debt Collection Subcommittee. He serves on the governing Board of Regents of the American College of Consumer Financial Services Lawyers and on the Governing Committee of the Conference on Consumer Finance Law .