Is it legal for a collection agency to resell a debt??
Date: Sun, 12/30/2007 - 04:11
I had completely forgotten about it because at the time I received the notice that this debt was sent to collections I was not financially able to even set up payment arrangements with them and figured they would continue contacting me for the money & I would be able to start making payments to them later.
In the last year or so I started getting notices from a different collection agency on the same debt! This debt is at least 10 years old. I contacted the new collection agency & they informed me that they had purchased the debt from the original collection agency & it is considered a new debt that they can actively collect on. She then continued to tell me that collection agency are free to sell accounts to one another & that when it is sold they are always considered a new debt. I told her that I could not understand how this could be legal to do since after 7 years from last payment arrangement or payment that they were not legally able to demand payment on that debt. She continued to tell me that what they were doing was perfectly legal & it was a way to stop people from getting out of paying their debts.
I then explained to her that if the original collection agency would have contacted me again after I was financially on my feet that I would have been more than happy to pay the debt but that since they did not follow up and do their job, I was not going to pay a different collection agency 10 years afterwards!!! I even went to the extent of asking the new collection agency who the original creditor was & what the amount I originally owed before they tacked on their interested and/or fees etc. She told me the name of the original creditor & said it was my responsibility to contact the creditor to find out what the original balance was that was sent to collection etc. When I argued with her & asked her how she could collect on a debt if she has no original creditor account information (just the name).
Can anyone tell me if this is legal for them to do? If it is, I don't udnerstand what good the statute of limitations is if it is not able to be enforced. Is there anything I can do to make this new collection agency stop contacting me??
After ten years it is sol for credit reporting and likely sol fo
After ten years it is sol for credit reporting and likely sol for civil action.You can check your local laws for that. Collectors buy and sell debts all the time. If it was me and I found out this debt was no longer legally collectable through civil action,I would send them a full c&d letter certified return receipt mail.
Hello mikeysgirl...welcome..this is all I know..more will be alo
Hello mikeysgirl...welcome..this is all I know..more will be along to advise you...statutes of limitations laws vary from state to state. You need to check the laws regarding the type of debt (you are talking about and what laws applies to that debt) within your state. If you have every paid a CA (over the years) that will restart the statute over again. As far as being legal...any CA can purchase an old debt and collect on it...but you are intitled to a debt validation and I would let the CA know that...before agreeing to anything.
What type of debt is it and what state do you live in? I'll be a
What type of debt is it and what state do you live in? I'll be able to better assist you once I have that information.
What kind of debt is it, to start with? Unless it's a judgement,
What kind of debt is it, to start with? Unless it's a judgement, then a 11-12 year old debt is more than likely SOL regardless of what state you're in. Give us the state, though, and we'll check it for ya just to be sure.
SOL means Statute Of Limitations*. That's generally 3 to about 8 years, depending on the type of debt and the state. Basically, once the SOL has run out, you cannot be sued for that debt. They are still allowed to dun you for it, but they have no teeth. You can send them a total cease-and-desist letter to prevent them from contacting you in any fashion. Send it certified, return reciept requested. Once they recieve that letter, they can no longer dun you at all.
* SOL also means that the sollection agency is Sh*t Outta Luck when it comes to collecting a debt that's too old. If that's the case, tell'em to get bent.
They can continue to sell and resell the debt is much as they wa
They can continue to sell and resell the debt is much as they want to. Personally I feel if it is a debt that you created then you should pay it when you can but if it isn't yours then you should send them a validation letter along with a C&D. When they can't find the information to prove that the debt is yours then they won't bother you anymore.
And then they'll likely just sell it to another agency.
And then they'll likely just sell it to another agency. 
It's the same thing they do when you send them a C&D letter on s
It's the same thing they do when you send them a C&D letter on something this old so it's just easier to take all of the steps then trying to cut a short path.
Eventualy you will run into a collection agency who does things the right way if this one isn't one of those already.
Everyone else has already posted very good comments so I'll just
Everyone else has already posted very good comments so I'll just make this a brief recap.
1) The main question still unanswered is what type of debt is it? Consumer debts (credit cards, installment loans) will likely be past SOL. However, student loans or other government debts may actually still be valid for them to bring suit over.
2) There is no limit on reselling a debt - debts can be resold amongst debt buyers indefinitely. However, it doesn't become a "new" debt when someone else buy it; the collector was wrong in telling you that much, it is still the same old debt.
3) SOL starts ticking when the account first defaults, and is reset any time you make a payment. However, debts that are past SOL can still be collected on - it doesn't make them illegal. SOL just means that a court will not intervene if you raise it as a defense. They could actually still sue you, and if you don't defend yourself by raising that defense then they could win.
Like the others here have said, send them a C&D letter and then they cannot call you anymore.
[quote=FYI]It's the same thing they do when you send them a C&D
[quote=FYI]It's the same thing they do when you send them a C&D letter on something this old so it's just easier to take all of the steps then trying to cut a short path.
Eventualy you will run into a collection agency who does things the right way if this one isn't one of those already.[/quote]
Good point, thank you. The reasoning behind my comments above is that [assuming here that we're dealing with consumer debt] if it's 11 or 12 years old, then she's probably dealing with a junk debt buyer, rather than a more ethical CA. Still, demanding validation is a very good way to proceed. I'd roll that into the CD letter, and save on postage.