Multiple Collection Agencies After Me

by Van
(Watertown)

Can a company turn you into a second collection agency after I've already set up a payment plan with the first one they turned me into? And will that effect my credit score even more?

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Feb 04, 2011
Multiple collection agencies
by: DebtCollectionAnswers.com

What you are describing is a huge problem for many people. Collection agencies will buy and sell debts, sometimes many times, and consumers will have trouble straightening out who they owe, and how much they actually owe.

If your debt is sold to another collection agency, it may appear as a different account on your credit report, and that certainly doesn't help.

But the laws are not clear on what is supposed to happen in these cases. Consumer groups like Consumer's Union have called for changes in the law to require debt buyers to provide clearer information to consumers when their debts are bought and sold.

Since you are already making payments to another collection agency for this debt, we recommend you do three things:

1. Dispute the debt with the new collection agency (in writing) and explain that you are already paying the debt to the first agency.

2. Send a certified letter to the collection agency you are making payments to, insisting they either tell you in writing that they have sold the debt and will not longer be collecting from you, or that they have rescinded the debt from the other agency to which it was sold.

3. Monitor your credit reports and if the new account shows up, dispute it. You can read our instructions about
how to dispute credit report mistakes for guidance.

If at any time you feel the collection agencies are not addressing this problem, consider getting a free consultation with a consumer law attorney who specializes in debt collection cases.

Good luck!

PS: Please keep in mind that we are not attorneys and this is not meant as legal advice.

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