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 Posted: Wed Jun 20, 2007 1:25 pm Subject: A new trend. Double collectors? |
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I can't believe I just sent NCO a validation letter and here comes a letter from another group trying to collect the same debt. It is an old bank account that was overdrawn by fraud and I could not get them to do anything about it. I wasn't as wise then. The most recent group is not in the worst agencies list as NCO is. I think they are Portfolio Recovery if I remember correctly. So I just have to change the name and address on the letter and send it again. It will be interesting to see who is legally collecting and who isn't. How can they do that?
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frogpatch
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| Posted: Wed Jun 20, 2007 1:39 pm Subject: |
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They will always do that, especially the ones that are known for their illegal business. When one company is unable to validate the debt, they pass on the file to another one and make some money in between. You should be alert on checking your credit report regularly. Any incorrect reporting from these companies is going to hurt your credit scores severely
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Bony
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cajunbulldog
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| Posted: Wed Jun 20, 2007 5:35 pm Subject: |
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Legally speaking, I'm not sure there's any law that says a creditor can't retain two different collection agencies to work the same account at the same time... this is supposing the original creditor still owns it.
It wouldn't make very much sense, as it would be hard for the left hand to know what the right hand is doing. But if their affairs are in order, and they both can validate the account, it may be legal.
I have also seen where a junk debt buyer buys an account, and then sends it out to a collection agency. In that case, both would need to verify the debt -- but it is legal. The question becomes, who owns the account, and who has the owner retained to service the account?
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DebtCruncher
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