Can a third party debt collector, collect interest on an assigned medical debt they do not legally own?

Asked over 1 year ago - San Ramon, CA

I was told by the debt collector, state law allows them to add interest to the original amount. I am confused, because the debt collector is not the legal owner, and the O/C denies ownership of such account in question.

Their debt validation response letter reads... The original creditor above has assigned your acct to this off for collection. As you have requested, and in accordance with FED/State law, enclosed is validation of the above referenced debt. Any info reported to any CR agencies is accurately reporting. I DO NOT AGREE, the computer generated "special statement" validates one acct. No validation on the other acct was provided. My 1st DEL. occurred as of the day of service.

They request I telephone their office within 10 days to pay the debt. Since they proved it.

Attorney answers (3)

  1. Kathryn Ursula Tokarska

    Contributor Level 16


    Lawyers agree


    Answered . I would respond back in writing stating the the validation failed to validate all accounts but yes interest can continue to be added to the balance owed.

    I am not YOUR lawyer. Don't rely on answers to questions as legal advice. For legal advice contact a Bankruptcy... more
  2. Isileli Tupou Manaia Mataele

    Contributor Level 19


    Lawyer agrees


    Answered . Debt collectors are notorious for their tactics. It is probably an attempt for you to call them to talk about the debt.

    This is not a comprehensive answer and it is impossible to provide a meaningful response without a consultation.... more
  3. Tregg Robert Lunn


    Contributor Level 13


    Lawyer agrees

    Best Answer
    chosen by asker

    Answered . Debt collectors may be able to collect interest. Before you do anytthing else, you should speak with a consumer attorney in your area. You may even have calims against the collector under the FDCPA.

Related Topics


There are different types of debt, but all involve one person (the debtor) owing money to another (the creditor). Terms of repayment are governed by a contract.

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