What if a collection agency has bought the debt?
The agency then becomes the creditor for most purposes. The debtor will not be able to make any negotiations with the original creditor. The agency might be technically able to file a lawsuit against the debtor, (although this is not likely.) However, the Federal Trade Commission has issued a Staff Opinion Letter which indicates that, even if a collection agency has purchased a debt, it is still covered under the Fair Debt Collection Practices Act as a “third-party debt collector.
Related Questions
- A debt collection agency may sue you and if a judgement is granted against you, a collection agency may go into your bank account to collect the amount owed. Question: Can I go to jail for not paying the purported debt?
- What happens if the debt is with a collection agency?
- What if a collection agency has bought the debt?
