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Do collection agencies have to have a written agreement between themselves and the original creditor?
Wiki User
∙ 14y ago
No they don't, usually the OC hires or farm out their accounts that are in collection status to CA's.
Wiki User
∙ 14y ago
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Am I in a debt collection process?
The easiest way to find out if you are in a debt collection process is when a debt recovery agency contact you or the creditor some times handle debt collection inhouse. Usually collection agencies send a demand letter but that depends after the creditor turn to collections their receivables
Why original creditors sale accounts to a collection agency?
Original creditors sale their accounts to collection agencies when the account has been past due and they have not effectively collected. At that time, the original creditor will charge off the balance from their accounts receivable and turn the account over to a collection agency. When the collection agency collects the debt, a portion of the amount received is paid the the collection agency and the remainder is returned to the original creditor as profit.
How does a creditor know where and what bank account to freeze?
The banks send your information to the major credit reporting agencies. In order to freeze your bank account the creditor must obtain a court order to collect on a debt from you. With that court order they can get your account information from the bank to process the freeze/collection.
Can a creditor or debt collection agency access your business bank accounts for debt collection?
With a judgment and execution, the sheriff can. Without it no. But the collection agency can never legally access it. However, there are ways to do it illegally. Can the creditor do it... ? If you have a citizens acct and a debt with them, then yes, they can legally access whatever accounts you have with them. But a creditor can't just get access to you bank accounts. (I own a collection agency)
Do you still need to pay a company if you are paying a collection agency for the charged off debt?
No, as they are the legal agent of the original Creditor and the arrangements made with the collection agency are binding on the original Creditor.
How do collection agencies get addresses?
Collection agencies have a couple of ways to get your address. They can either get your original address from the original creditor or by skip tracing.
How do you keep creditors and lawyers and collection agencies from continually viewing information on your credit report without your permission?
Consumers (although some do not realize it) authorize the creditor and agencies and legal representatives acting on the creditor's behalf to access their credit report when they sign the original account agreement. It is perfectly legal and there is nothing the debtor can do to prevent the action.
Am I in a debt collection process?
The easiest way to find out if you are in a debt collection process is when a debt recovery agency contact you or the creditor some times handle debt collection inhouse. Usually collection agencies send a demand letter but that depends after the creditor turn to collections their receivables
What is the statute of limitations in on medical bills in Kentucky?
Debt collection in Kentucky is long. The creditor has up to 15 years to collect on a written agreement. They have 5 years for an Oral agreement or Credit Card.
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 collection agency charge fees or interest in new jersey?
Collection agencies can't add charges. Fees and interest charged to your account are per the terms of your contract with the creditor.
Can a collection attorney collect if you sent them a letter to cease and desist and the original creditor sent you an agreement that you agreed to pay?
If you paid according to an agreement and can prove it, the attorney couldbe liable for damages to you for unfair debt collection ro fraud.
What are your rights against bill collector callers who do not identify themselves hang up and threaten to sue?
Collection agencies are governed by federal and state laws. Debtors are given protection under the Federal FDCPA. A collection agency cannot "threaten" you with anything. They can inform you that your account may be referred to a collection attorney and legal action may be initated. Please familarize yourself with the laws pertaining to collection agencies. Be advised, that some of the laws do not apply to the original creditor.
Do collection agencies have the right to file collection on a credit report since you never signed or agreed to a contract with that company?
Yes, if the contract a consumer signed with the Original Creditor (OC) allows for transfer of their rights to a Collection Agency (CA) when a defaulted account is sold or assigned. It is not customary for CA's to have contractual agreements between themselves and the consumer. Typically they collect on debts under the terms of the contractual agreement between the OC and consumer. They also rely upon their contract with the OC, which grants them certain rights.
Does the creditor or the collection agency get the money you pay on a debt?
When a collection agency takes on a bad debt, in many cases they are "puchasing" the debt from the original creditor. When you then pay off the collection agency, your money will stay with that collection agency. This is the most common scenario, but some companies do have their own internal collection agencies (Capital One, for example, has their own collection subsidiary in Idaho - the Westmoreland Agency). Hope this helps!
Is it legal for a creditor or debt collection agency to access a bank account for debt collection?
To access to bank account as such, no. But if the debtor agrees to have ACH for payments, then the creditor or collection agencies can withdraw funds, or depending on the state laws a Judge can authorize to garnish wages from the bank. Find laws that apply to the debt in the resources box
Can you pay a civil judgment in payments?
Usually you can work out a payment plan with a judgment creditor. If you do not have the money now, a payment plan (and settlement agreement) is a cheaper and better alternative to the other collection techniques in the Creditor's arsenal.
