3rd party collectors

[glc4122]

when a creditor turns over the original debt to a 3rd party collector, do they send a notice by mail that this transaction has taken place or only by phone?

[CPO]

when a creditor turns over the original debt to a 3rd party collector, do they send a notice by mail that this transaction has taken place or only by phone?

Usually, the accounts are sold to a collector via a standard contract, paid "pennies on the dollar."

Some creditors provide collectors original documents, some are done with microfiche and some are electronic and some are little more than names and last known contact info.

Many large creditors maintain serial relationships with certain collectors...but other than documents filed with the state maintaining authority to collect debts in that state the actual contract relationship is normally confidential.

There is no requirement that any notice is provided to a debtor, if that's what your asking.

Probably the first you will know about it is via a collection phone call, letter or by examining your credit report.

If you demand a "debt validation" letter, the collector is required to provide proof that they hold the rights to collect said debt.

But only if you demand it.

Regards,

CPO

[dscurlock]

when a creditor turns over the original debt to a 3rd party collector, do they send a notice by mail that this transaction has taken place or only by phone?

no, but you may know it when you look on your credit report..

I owe $800 on a debt thats been on my report for 2 years now.

it was obvisouly sold to a new collecter, without notice or warning, the new collection has recently appeared on my report for $950, they did not bother calling or sending a letter for collection, they just put it on my credit report. if these guys really buy debt stuff for pennies on the $$ why increase the debt by $150, why not lower the debt amount for a better chance to collect...

so now i have two debt collection amounts on my credit report for the same debt issue, all this has really done is make my score go down even futher.

[treehugger1]

If you never received verification/validation AND you requested it prior to 30 days after receiving the collection notice, you should immediately file a dispute with all three credit reporting agencies. You may or may not get results. On the other hand, the credit reporting agencies are under some pressure these days and you may get pleasing results. You might as well have the credit reporting agencies do some of the work for you.