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Is it legal for one creditor to place the debt with two agencies at the same time?
Yes, a creditor can place the same debt with multiple collection agencies simultaneously, but they must ensure that they comply with the Fair Debt Collection Practices Act (FDCPA). Each agency must be informed that the debt is being handled by others, and they cannot mislead or harass the debtor. However, this practice can lead to confusion for the debtor and potential legal issues if not managed properly.
What else can I help you with?
Is it legal for a creditor to sell your debt?
Yes, it is legal for a creditor to sell your debt to a third party.
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
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
How do i find out who the original debt is owed to if two colection agencies are trying to collect?
Ask the collection agencies. They have to reveal who the debt was incurred through, The real question is why are there TWO agencies collecting the same debt? Be sure that there aren't two separate amounts owed to the original creditor.
Can you use a debt consolidation company if the credit card companies have already sold your accounts to collection agencies?
Yes, but neither a collection agency nor the original creditor has any legal obligation to communicate or accept the terms offered by a debt consolidation agency.
Do you have to go to court for debt collection?
Yes, if a creditor takes legal action to collect a debt, you may have to go to court.
Is it legal for debtor to assign debt to a willing third party?
It is not legal for a debtor to assign debt to a willing third party unless the creditor is involved. The creditor must approve the transaction. For example, the sale of an automobile with the statement agreeing that the buyer takes over payments is valid if the creditor agrees.
What is the difference between a secured creditor and an unsecured creditor in terms of their legal rights and priority in the event of bankruptcy?
In bankruptcy, a secured creditor has a legal right to specific collateral that secures the debt, giving them priority in getting paid from the sale of that collateral. An unsecured creditor does not have collateral securing the debt, so they are lower in priority and may not receive full payment.
What to do if a creditor still says that you owe them after a cancellation of debt?
Ask the creditor to send you written verification of the debt including all of their documents after incurring the debt. If the cancellation of the debt is not indicated in their documents, then dispute the debt by providing your written notification of cancellation of the debt to the creditor and if unsuccessful, then dispute the debt with the credit bureaus who will initiate an investigation with the creditor and the credit bureau will usually repond to you in 30 days. If no response from the creditor then it will usually be deleted from your credit report. If the collection harassment continues then ignore it realizing that probably no legal action will be taken against you or you can contact an attorney to contact the creditor. Either pay the debt or file bankruptcy.
Is it illegal for a creditor to sell your debt?
No, it is not illegal for a creditor to sell your debt.
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 you explain how collections agencies work?
Collections agencies are businesses that help creditors recover money owed by individuals or businesses who have not paid their debts. They typically purchase the debt from the original creditor at a discounted rate and then attempt to collect the full amount from the debtor. This can involve sending letters, making phone calls, and even taking legal action to recover the debt.
