Can a debt be sold to multiple collection agencies?

Unpaid collection accounts can get sold from debt collector to another, leaving your credit report with multiple collection accounts for one debt. It is up to you to review your credit reports to make sure you do not have multiple debt collectors reporting for the same debt.

Why Do collection agencies keep selling your debt?

Sometimes collection agencies sell entire portfolios of debt accounts to each other. The reason for this is that the creditor might assume that you are never going to pay your debt; selling the debt to a debt collector or collections agency may help them recoup at least some of their money.

Can a collection agency re-sell a debt?

It’s even possible for a single debt, if uncollected, to lead to more than one collection entry on your credit report. A collection agency that’s unsuccessful getting a payment from you can re-sell the debt to another collection agency.

When do creditors sell debts to debt collectors?

Debts regulated by the Consumer Credit Act, can be sold on or placed with another company any time after you stop paying, this is a normal part of the debt collection process. This applies to most common types of consumer debt such as a loans, overdrafts, credit cards and store cards, hire purchase and catalogues. Why do creditors sell debts?

Can a debt collector falsely re-age a debt?

If the collection agency states that the falsely re-aged debt is legitimate, you may be able to sue in a small claims court for violating your rights. Don’t let “re-aged” debt ruin your credit scores or your chances of having good credit.

How can I stop a debt collector from collecting?

You will want to send a certified “cease and desist” letter to any agency attempting to collect. You can also petition the credit bureau directly. Start off by requesting relevant documentation from one or all of the credit bureaus. According to the FCRA, you have the right to view any information in your consumer file.