Can a debt collector sell your account to another collection agency?
Summary
Debt collectors can sell your unpaid debt to other collection agencies or debt buyers. The debt may change hands multiple times, but you still owe the money if the debt is valid, and the new collector must prove they have the right to collect it.Key Facts
- Some collection agencies collect debts for original creditors and do not own the debt, so they cannot sell it.
- Creditors may sell delinquent debts to debt buyers who then own the debt and can sell it again.
- A single debt can be transferred many times over several years with no legal limit on transfers.
- Your legal obligation to pay the debt remains the same regardless of the debt owner.
- New debt collectors must prove they have the legal right to collect the debt.
- The Fair Debt Collection Practices Act protects you by allowing you to request validation of the debt and protects against unfair practices.
- Before paying, you should ask for written proof of the debt, confirm the collector’s authority, check your records, and review the statute of limitations in your state.
- Keeping records of all communications and payments can help if there are disputes after several transfers.
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