How to Find Out What Collection Agency Owns Your Debt
Always verify which collection agency legitimately owns your debt before making payments. Request debt validation letters, check your credit report, and contact the original creditor to confirm ownership. If you receive a lawsuit, respond within the deadline to protect your rights and avoid default judgments.
Answer Your LawsuitWhen you fall behind on payments, creditors often sell your debt. They may also assign it to third-party collectors while keeping ownership.
Creditors don’t want the hassle of chasing you down. They likely tried contacting you multiple times before giving up.
Collection Agency Suing You? Respond in 15 Minutes
Don't risk a default judgment and wage garnishment. Draft your court response now with attorney review included.
Respond to LawsuitFinding out who owns your debt protects you from scammers. It also helps you pay the right party.
How to Tell If Your Debt Was Sold
Over 7,000 debt collection agencies operate in the United States. Your bank can sell your debt to any of them.
You should receive notification when this happens. But many people don’t get proper notice. You might receive calls from unknown agencies demanding payment.
Here’s how to verify who legitimately owns your debt.
Contact the Original Creditor
Start by calling your original creditor directly. They maintain complete records of your debt.
They can tell you who owns it now. They’ll also provide proper payment instructions.
Review Your Credit Report
Your credit report shows which company bought your debt. Access free reports from Equifax, Experian, and TransUnion.
Collection accounts appear as separate records on your report. Look for unfamiliar company names in the collections section.
Get Collection Agency Contact Information
Your credit report includes contact details for collection companies. Use this information to reach them before further credit damage occurs.
Verify the phone number matches the one calling you. Scammers often spoof legitimate agency names.
Request Debt Validation
Send a written dispute letter if you’re unsure about the debt. State that you dispute the debt’s validity.
The agency must send you a debt validation letter. Our partner Solo can help you draft this request properly.
The validation letter includes several key details:
- The company name you owe
- The original creditor’s name and address
- The exact amount you must pay
- Your rights under federal law
You have 30 days to respond after receiving validation. The collector must stop contact until they provide proof.
Should You Pay a Collection Agency?
Once you confirm the legitimate owner, you have options.
Clear the Debt
Paying in full stops collection calls immediately. Your credit report will show the account as paid.
The collection record stays on your report for seven years. But paid collections look better than unpaid ones.
Negotiate With the Collector
You can request a payment plan if full payment isn’t possible. Many agencies accept monthly installments.
Some collectors settle for less than you owe. They may accept 40-60% as payment in full.
Get any agreement in writing before paying. Verbal promises don’t protect you from future claims.
The collection agency isn’t required to negotiate. They can reject offers that don’t meet their requirements.
Dispute Invalid Debts
Write to the collector within 30 days if the debt isn’t yours. They must stop contacting you until they prove ownership.
Check for these common errors:
- Wrong amount listed
- Debt past the statute of limitations
- Identity theft or fraud
- Already paid accounts
What Happens If You Don’t Pay?
Ignoring collection accounts damages your credit score significantly. Future lenders see you as high-risk.
You’ll face higher interest rates on loans. Some lenders may deny you completely.
Debt Collection Lawsuits
Collectors can file lawsuits to recover debts. You’ll receive a court summons and complaint.
You must file a response within the deadline. Most states give you 20-30 days.
Our partner Solo helps you respond to lawsuits in 15 minutes. An attorney reviews your answer before filing.
Default Judgments
Failing to respond gives collectors a major advantage. They can request a default judgment.
Judges grant these requests when you don’t show up. You lose automatically without telling your side.
Default judgments give collectors powerful collection tools. They can garnish your wages or freeze bank accounts.
Wage Garnishment
Courts authorize collectors to take money from your paycheck. Employers must send a portion directly to the collector.
Federal law limits garnishment to 25% of disposable income. Some states offer greater protection.
Bank Levies
Collectors can also seize money from your bank account. Banks freeze your funds when they receive a levy order.
You may lose access to money needed for bills. Some funds like Social Security have protections.
Fighting Back Against Collectors
You can win debt collection lawsuits with proper responses. Filing an answer preserves your legal rights.
Common defenses include:
- Statute of limitations expired
- Incorrect debt amount
- Lack of proper documentation
- Identity theft or fraud
- Debt already paid
Never ignore a lawsuit even if you think you don’t owe. Responding is your only way to fight back.
Working With Original Creditors
Settling with original creditors is often easier than dealing with collectors. They’re more willing to negotiate payment plans.
Contact them as soon as you realize you can’t pay. Early communication prevents debt sales.
Debts sold multiple times become confusing to track. Each sale makes verification harder.
Always confirm you’re paying the legitimate debt owner. Request written proof before sending money.