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Can a third party collection agency who owns debts sue after purchasing right away?
Wiki User
∙ 14y ago
No. They are required by law to provide you with two notices, which are typiclly sent in a single letter, that being (1) that they have purchased the debt and you now owe them the balance; and (2) provide you with the required notice that you have 30-days to dispute the debt and to require it to be validated. Secondly, it would be illegal for them to file any lawsuit or threaten to file such action within that 30-days validity prior. They could however provide you with that first notice and inform you that they will be filing a lawsuit in 30-days; but even that has proven in court to still break if not bend the rules. I would say to Google for a FDCPA attorney because you would have a case for them violating the laws if that is what they said or did; since both are not legal.
Wiki User
∙ 14y ago
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What are some creditor services that First Recovery Solutions collection agency offers?
Some creditor services that First Recovery Solutions collection agency offers include Medical Debt Collection, Third Party Debt Collection and NSF Check Collection. You can learn more at the First Recovery Solutions website.
What is OSI collection services inc?
OSI Collection Service is a "Third Party" Collection agency. Collection agencies buy your information from the original creditor in order to collect on a debt. What this means is that they make money if you pay anything on this debt, not only from the original creditor, but a commission on the payment that you make on that debt.
Can a debt collector report to a CRA a debt which was never reported by the original creditor of the debt?
The answer to your question is Yes, they can report a debt that was never origionally reported to the CRAs. This is most common with medical expenses. You may have an outstanding debt to a doctor's office for example, and though Doctors do not typically report debts to a CRA, if they sell your outstanding debt to a collection agency, they absolutly have the right to report it to your credit report. So, in a word, yes, it is legal, and is actually quite common. Hope this helps! In fact it is against the Fair Debt Collection Practices Act for a medical debt to be reported to the credit agency, but it doesn't apply if they sell the debt to a third party collection agency. Nice way for them to get around that.
Is the original creditor required to notify you of debt before using a third party collection agency?
Yes, the original creditor should have notified you that you had an outstanding balance. The creditor also notifies you that they will be submitting your debt to a "third party" collection agency. This is usually the final notice before your debt is sold. If you never received a notice, it is not required that the original creditor send you notice, all it is is common curiosity that they do.
Do you have to pay a debt that was on collection for seven years or it would be a waste of money?
It is always best to pay one's debts if at all possible. Most debts are expunged from a person's credit report after seven years have elapsed from the time the debt was defaulted upon. Likewise, in most cases, the SOL for the collection of a debt through civil action will also have expired. That, however does not apply to all debts. The concerned party needs to determine the nature of the debt and the laws of his or her state which are applicable to the matter.
What is a second party collection agency?
A second party collection agency is an agency trying to collect a debt that is owed to someone else. If for example, you owe on a store credit card from ABC store, they may turn the debt over to another agency that has nothing to do with them. This is a second party collection agency.
What is a third party collector?
Collection agency.
What is a first party Collection agency?
That's the original creditor's "in house" collection department. They are NOT subject to the FDCPA as are 3rd party collection agencys.
Can you pay a debt to the original company once it has gone to collection?
The only person that can accept payment once an account has been charged off is the purchasing agent. When a collection agency purchases your debt, they purchase all legal rights to it, including any payments made towards the account. If you were to pay the original creditor after a chargeoff, they are required to forward that payment to the purchasing agency and this can be a rather lengthy process. Understand that many debts that go to collections are interest bearing and the longer a payment takes to get to the correct party, the more you may be paying in the end.
Can a collection law firm buy collection agency debts?
Yes, these are known as Third Party debt collectors. They will often buy up old debts for pennies on the dollar, and attempt to collect the original amount from you. The good news is, since they paid pennies on the dollar, you might have a better chance of negotiating a payment that is agreeable to you.
Do collection agencies offer discounts on debts?
That might be a bit optimistic, but possible. A collection agency will sometimes 'buy' debts from other companies, companies who consider the debt uncollectable. Maybe they just don't have the people or resources to pursue it, etc. So rather than writing the debt off completely, it is sold at a percentage of the total value, to a collection agency. This collection agency now pursues the debt. They may consider accepting a smaller payment from the debtor, as long as they are making a profit on the whole. However you will tend to find that the agency is most definately after a full payment, plus interest. If the agency is acting as a first or third party agent (pursuing the debt under the instruction of the owed company) then they may not be able to accept anything less because of their obligation to the company they are acting as an agent of.
Does the Fair Debt Collection Practices Act only apply to prejudgment debts?
The FDCPA applies to 3rd party collection agencies. It has little to do with the KIND of debt. It has everything to do with defining the BEHAVIOR of 3rd party collectors.
What does it mean when your credit report states that you have a paid closed collection account on you credit report?
The original account with a normal credit company went to a third party collection agency. Only after it went to the collection agency was the debt paid and then the account closed.
What are some creditor services that First Recovery Solutions collection agency offers?
Some creditor services that First Recovery Solutions collection agency offers include Medical Debt Collection, Third Party Debt Collection and NSF Check Collection. You can learn more at the First Recovery Solutions website.
What does the legal use of the term assigned mean in regards to debt assignment?
In the context of debt assignment, "assigned" means transferring the rights and responsibilities of a debt from one party to another. This could involve selling the debt to a third party or assigning a debt to a collection agency for collection. It is important to follow legal procedures and requirements when assigning debts to ensure validity and enforceability.
Can a debt be classified as a judgment if you made a payment and the collection agency contacted you and you showed proof of payment and are paying the remaining balance?
if collection agency is not from your lender, but third party, then you need to fax them proof of your payments to your lender or financial insitution and have them send you a letter stating that they will not report you to credit bureau. and also have them contact the collection agency you are making payments. asian623 http://www.myspace.com/scionturboracing
How many years can a collection agency still pull your credit report?
A collection agency can't access a credit report w/o the permission of the party involved. They may try to mislead someone into believing they are able to do so, and that is a violation of the FDCPA and should be reported as such.
