Assigned on Briefs October 2, 2017
from the Circuit Court for Davidson County No. 14C740 Kelvin
D. Jones, III, Judge No. M2016-02352-COA-R3-CV
appeal involves the attempt of Converging Capital, LLC, to
collect an alleged credit card debt of Michael Matthews.
Converging Capital alleged that it owned the debt as a result
of a sale of certain accounts receivable from Pilot
Receivables Management, LLC, which had earlier bought the
debt from Citibank, the issuer of Matthews's alleged
MasterCard account. During the trial, Converging Capital
presented the testimony of its records administrator.
Matthews objected to the introduction of the bills of sale
and assignment, and several credit card statements, on
hearsay grounds. He also argued that Converging Capital
failed to establish that his debt, if any, was included in
the sales of the accounts receivable. The trial court
overruled these objections and entered judgment against
Matthews in the amount of the alleged debt, $55, 684.88. We
find that Converging Capital failed to meet its burden of
proving that it owned the debt. Consequently, we reverse the
judgment of the trial court and dismiss Converging
Capital's complaint with prejudice. Costs are assessed
against Converging Capital.
R. App. P. 3 Appeal as of Right; Judgment of the Circuit
Court Reversed; Case Remanded
Powers, Nashville, Tennessee, for the appellant, Michael
Alice Humphrey, Little Rock, Arkansas, for the appellee,
Converging Capital, LLC.
Charles D. Susano, Jr., J., delivered the opinion of the
court, in which Andy D. Bennett and Kenny Armstrong, JJ.,
CHARLES D. SUSANO, JR., JUDGE
with its complaint, Converging Capital filed an affidavit of
account from its "authorized agent [and] person in
charge of [its] business records, " Crystal Baker, which
states as follows:
That after the allowance of all credits and offsets, the
amount that MICHAEL MATTHEWS owed as of the charge off date
was $55, 624.88. This amount remains due and owing.
(Capitalization in original.) Matthews answered, admitting
that "he has made charges on a credit card from
Citibank, " but stating that he "does not have
sufficient knowledge to admit or deny whether this account
has been purchased or assigned to the Plaintiff." He
further alleged that he did not have sufficient knowledge to
admit or deny the allegations of an outstanding balance of
$55, 684.88 that was unpaid, past due, and owing by him.
trial, Converging Capital introduced collective exhibit 1,
consisting of two bills of sale and assignment and fifteen
credit card statements of the MasterCard account issued to
Matthews,  through its records custodian, Baker. When
Baker was asked whether, "as part of your records, do
you also have a chain of title as to how Converging Capital
acquired this particular account, " she replied,
"Yes, I do, " and referred to the two bills of
sale. The first states as follows:
THIS BILL OF SALE AND ASSIGNMENT . . . is by Citibank, N.A. .
. . (the "Bank") to Pilot Receivables Management,
LLC . . . ...