Can debt collection agencies sell your info to a law firm?

Can a debt collection agency sell your info to a law firm in the state that you live in? That law firm acquires the debt and they win a judgment against you. Meanwhile, the law firm has paid their client the money before the judgment takes place. Technically, the collection agency has been paid in full by the law firm. The law firm wins the judgment and keeps the money that has been garnished from your wages. Can this happen?

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Sep 18, 2009
Can debt collection accounts be sold?
by: Gerri

Unpaid debts are sold all the time. If a debt collector is unable to collect, it may sell the debt to another agency, including a debt collection law firm. The fact that the collection agency was paid for the debt by the law firm doesn't affect whether or not you are still responsible for payment.

Debt collection law firms must still follow the same federal debt collection laws that other collectors must follow. And there may be a state law that offers additional protection.

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