topic Debt being sold to multiple collectors in General Credit Topics

Debt being sold to multiple collectors

RedSouljah — Wed, 20 Feb 2019 01:00:07 GMT

I have two collections that are both using multiple collection companies to collect. One debt is from Macy's and the other is from Credit One. Are creditors allowed to sell debts to multiple collectors? I'm getting letters from different companies on the same debt every few months or so. Only one is reporting on my credit report (LVNV for Credit One) but I have letters from others who aren't. Is that legal?

Re: Debt being sold to multiple collectors

RobertEG — Wed, 20 Feb 2019 07:05:23 GMT

You need to dig a bit deeper and determine the standing as to the collection authority of each debt collector.

A debt collector can purchase a debt, and then assign authority to another debt collector to conduct collection activities on their part.

That is frequently done when a debt collector acquires a portfolio of debt, where one or more accounts are found to involve consumers who reside in states where the purchasing debt collector is not licensed or bonded to collect on their own.

Only one debt collector is permitted to report collection at the same time on an unpaid debt.

That is based on CRA reporting policy, and not any limitations of the FCRA of FDCPA.

Re: Debt being sold to multiple collectors

RedSouljah — Thu, 21 Feb 2019 02:35:02 GMT

Thanks for the info. I'll dig a little more.