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How do you know if a collection agency is a "debt buyer" or an "in- house collection" agency?
Los Angeles, CA
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Posted about 1 month ago in Debt Collection
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Thank you Ms. Koslyn for answering my question on how collection agencies work, but this led to another question: How do you know the difference between a "debt buyer" and an "in-house collection agency"?
What I am hearing you say is that there are levels of negativity with respect to your credit report depending on which collection agency you are dealing with. Am I to believe it is better to pay a "debt buyer" when none of the funds will be returned to the creditor just to look a little better on a credit report? Wouldn't the damage have already been done to your credit regardless of which agency you were dealing with? Yes, I believe in paying my bills; my ex-husband does not. Thank you. - Is this your question? Add additional information Answers (1)
Pamela Koslyn
This attorney is licensed in California.
Posted about 1 month ago.
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Google the collection ccompany's name - you may be able to find if they're the in-house or an outside collector. But it makes no difference who's collecting the debt, whether the creditor or its agent, they can all ding your credit, if they choose to, and whoever owns the debt can still sue you. Creditors and agents use credit reporting inconsistently - some report lots of negative, some don't, and you can't assume that the type of creditor or agency will report a certain way.
In general, the more effort they have to make, the more negative their credit reports. If your debt has been sold, that means they creditor has already largely given up on getting paid, but the agency that owns the debt can still sue you. If you pay a debt buyer who owns the debt, then the debt buyer won't sue you, and that's a lawsuit and judgment that won't end up on your credit rating. If your credit rating is important to you, and it should be, get your report from www.annualcreditreport.com to see what's on there, and if you're paying this debt, ask the creditor or agency as part of the deal to report the debt paid. Disclaimer: Please note that this answer does not constitute legal advice, and should not be relied on, since each state has different laws, each situation is fact specific, and it is impossible to evaluate a legal problem without a comprehensive consultation and review of all the facts and documents at issue. This answer does not create an attorney-client relationship. |
