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Is It Illegal for a Collection Agency to Buy Your Debt and Come After You?

Yes, debt collectors can sell your debt to third-party entities known as debt buyers. When a debt collector is unable to collect payment on a debt after a certain period, they may choose to sell the debt to a debt buyer for a fraction of its original value. This allows the original creditor or debt collector to recoup some of their losses while transferring the responsibility of collecting the debt to the buyer.

Once a debt is sold to a debt buyer, the buyer assumes ownership of the debt and has the legal right to pursue collection efforts. Debt buyers may employ various tactics to collect the debt, including phone calls, letters, and even legal action such as filing a lawsuit.

It’s important to note that when a debt is sold to a debt buyer, certain aspects of the debt may change. For example, the terms of repayment, interest rates, and even the amount owed may be subject to negotiation between the debtor and the new owner of the debt.

However, regardless of whether your debt is owned by the original creditor or a debt buyer, you still have rights as a debtor. Debt collectors, including debt buyers, must adhere to the Fair Debt Collection Practices Act (FDCPA), which prohibits abusive, deceptive, and unfair debt collection practices.

If you are contacted by a debt collector regarding a debt that has been sold, it’s essential to verify the legitimacy of the debt and understand your rights. You have the right to request validation of the debt, dispute any inaccuracies, and request that the collector cease communication with you if you so choose.

In summary, debt collectors can sell your debt to third-party debt buyers, who then have the legal right to pursue collection efforts. Regardless of who owns the debt, you have rights as a debtor and protections under the FDCPA. It’s important to be informed about your rights and options when dealing with debt collection efforts.

Our attorney has more than 14 years of experience with fighting debt collection agencies, visit his profile page here, attorney profile.

  • There are absolutely no legal fees that you will ever be responsible for.
  • Under the FDCPA the collection agency is liable for attorney fees. 
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