Call your original creditor and ask about resolving your debt. If they sold your debt, ask for the name of the company that bought it. Review your credit report to see if a known debt buyer is reporting a collection account (your original creditor’s entry will often reflect they sold the account).
Can a credit card company sell your debt?
Once a bank, credit card company or other lender gives up trying to collect a debt itself, it often sells the account to a debt buyer for a tiny fraction of the amount owed. Because their information is incomplete, debt buyers often go after people for debts they’ve already paid.
Where can I find out what debt I owe?
Account types you’ll be able to find on your credit reports include credit cards, personal loans, mortgages and more. Your credit report lists the amount owed on every account, along with its status and payment history, and contact information for the creditor handling the debt.
Can a debt be sold by a creditor?
Debt can indeed legally be sold or assigned, and a creditor’s doing so does not relieve the debtor of obligation to pay — otherwise, the debt purchasing industry would not exist. Typically, a creditor sells a debt for a fraction of its value: For example, a $10,000 debt might be sold for $2,000 to a debt purchaser/collector,…
What to do if an original creditor appears on your credit report?
If an original creditor and collection agency appear on your credit report, don’t fret. You still have options. Request validation of the debt, work with a credit repair company if necessary to remove inaccurate items, and pay off the debt as quickly as possible to avoid incurring more debt.
How can I find out if a debt is valid on my credit report?
You can also check it regularly with Credit.com’s free Credit Report Card. Then, you can make an informed decision about next steps, which might include one of the options below. If you know that the debt is valid, you may be able to negotiate a settlement payment with the original creditor.
