Expert: Ray A Miller - 9/10/2008

Question
I entered into a payment agreement with Collection Agency A.  One week after making my first payment as agreed, Collection Agency B notified me that my debt had been turned over to them.  I have requested verification from Agency B, but have not received an answer at this time.  I contacted Agency A via phone, and was told that my account had indeed been turned over to Agency B and that I would no longer be billed by them, as my account was no longer with Agency A.  I am now receiving phone calls from Agency A, requesting that I keep making payments and that the debt is with them still, despite what I was told before.  Additionally, Agency A is requesting that I make larger payments than agreed upon originally.

How should I proceed with this?  Obviously, I do not want to pay an agency that does not own my debt.  I do not want to default on the agreement if they do actually have the debt, however. Should I ask for verification, or would it not matter at this point in time?  Thank you.

Answer
Write both collection agencies and the original creditor, by certified mail, and demand that they send you validation of the debt and inform them that you are exercising your rights under the FDCPA to dispute the debt. Inform the agencies that you are going to contact the FTC, Attorney General for your state, the BBB about there apparent illegal collection activity and will also dispute this debt with the credit bureaus. Put on the letter CC: who ever you copied, so they will know you mean business.

Here is the information you will need:

FCT:  http://www.ftc.gov/

Attorney General:  Search for <your state> attorney general

BBB:  Search for <your area> better business bureau

Trans Union:  http://www.transunion.com/corporate/personal/creditDisputes.page

Experian:  http://www.experian.com/disputes/

Equifax: http://www.equifax.com/online-credit-dispute/

Two collection agencies collecting the same debt at the same time is serious.  If necessary, get your self an attorney and turn the tables.

If you need further assistance please send a follow up question and good luck with this.