Whats the difference between the Original Creditor and a Collection Agency?
The original creditor is much more difficult to work with because they really don’t care that much about collecting. They receive a salary, unlike the collection agent who only gets paid when they collect. And, a collection agency must comply with the Fair Debt Collections Practices Act, but the original creditor is not held to that standard. So most strategies to validate and negotiate debt, or cease and desist do not work with the original creditor. It’s actually in your best interest to work with a collection agency because they are always looking for fast cash. Once you start asserting your rights with validation of debt letters (discussed later), you begin to become empowered. Do your research. Learn as much as you can about the collection agency, because in many instances: • A collection agency will not have a license for the state they are trying to collect in; and/or • They may have a suspended license-a very common occurrence. If either of these is the case, the collection age
Related Questions
- I fell behind in my payments and my creditor turned my debt over to a collection agency. The collection agency is bordering on harassment, what are my rights?
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