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Collections Law/Debt Collection


Around 6 years ago, I got behind on my credit card payments due to financial problems I experienced related to my divorce.  As a result, my credit card company charged off my account to a collections agency.  At the time, I owed tens of thousands of dollars.  I made arrangements through the collection agency to pay off the debt with reasonable monthly payments.  For the last several years, everything has been going smoothly and I've made all of my payments on time via direct draft from my checking account.  Recently, another collections agency has been calling me claiming that my credit card company has transferred my account from the previous collections agency to them.  They have requested that I give them my checking account information so that they can continue my payment arrangements.

However, I am very leery of this because I have not received anything in writing.  They claim that they can not send me anything in writing and suggested that I call my credit card company - which I did.  My credit card company has stated that it is not their policy to send anything in writing as well.  The only hint that I have that something strange is happening is that my direct drafts from my checking account are no longer taking place.  Should I set up payment arrangements with this new agency?  Also, what's to prevent the previous agency from continuing to draft from my account since I authorized them to do so through next year?

I'm a responsible person and am fully willing to pay any debts due, but this seems very shady to me.

Any advice that you can give with regard to my circumstances would be appreciate.

Thanks in advance!

You are certainly within your rights to expect to know who you are being asked to send money to.

Here's what I would do:

Get back on the phone to the Original Creditor - ask the following question: "Has this debt been sold to a third party?"

If the answer is YES then both the Original Creditor and the Third party owe you that information in writing and I would not send any money until I have it.

If the answer is "no" and neither party will confirm to you in writing the new Agency's right to collect, then I would simply send the payments to the Original Creditor. If the debt has not been sold you are under no legal obligation to pay any Collection Agency directly - you can pay the original creditor.

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Steve Katz


Debt Collection, Credit Reporting, FCRA, FDCPA, TCPA issues


Founder of Debtorboards, co-author of Debtsmanship, former Collector, Credit Counselor


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