Inquiry About the Original Creditor
The original creditor is often able to tell you which agency purchased or acquired your account. However, it might also be possible that the account has been transferred to a third-party agency, in which case the original creditor may not be able to provide assistance. The original creditor may not accept payment from you or even discuss the account with you. Once the original creditor sells the debt, there is very little they can do to settle the account. You may need to contact the collection agency to find out the amount owed and how to pay the balance.
Check Your Credit Report
Most collection agencies report debts to credit bureaus, so you may find the agency’s name and phone number you need in a recent copy of your credit report. Collections that are brand new or over seven years old may not appear on your credit report. There is no way to know whether the collection agency reported your debts to one of the three credit bureaus or all of them. Thus, it may be necessary to check your credit reports with each of the major credit bureaus: Equifax, Experian, and TransUnion.
Check Voicemail Messages and Caller ID
Legitimate collection agencies will leave a voicemail message and contact information if they are unable to reach you directly by phone. You can also identify the collection agency simply by the phone number on the caller ID or voicemails by entering the number into a search engine. The search results may include reports from websites where others have shared information about the person who called from this number and the nature of the call.
Wait for Them to Contact You
If you are unable to find the information yourself, sometimes the best thing you can do is wait for the collectors to reach out to you by phone or message. Eventually, the agency that owns the debt will contact you to collect the amount owed to them.
Negotiate with the Collection Agency
Once you determine who is trying to collect your debt, you need to have a plan to settle the account. If the collector purchased the debt from the original creditor, it is important to understand that they may have done so for less than the actual debt value. For example, it is not uncommon for debts of $10,000 to be purchased for less than $1,000. This way, the original creditor gets some money, and the new owner of the debt can profit from any amount they collect above the purchase price.
Frequently Asked Questions (FAQs)
How can I tell if a debt collector is legitimate?
If someone calls claiming to be a debt collector, ask for all the details you can get about the collection agency, including phone numbers, street addresses, and license numbers if you live in a state that issues licenses to collection agencies. Verify that information using your state’s Secretary of State or any other regulatory authority that oversees these companies.
What happens if I don’t pay the collection agency?
Ignoring debts can be detrimental to your credit record, and the collection agency can sue for wage garnishment or seize assets instead of repayment of the debts. This, in turn, affects your ability to access financial products, and when a loan or credit account is extended, it is likely to be at a high-interest rate. A poor credit record may also affect how potential employers view your applications.
How…
How much time do you have before the collection agency reports to the credit bureaus?
Collection agents can report your information to credit bureaus after following certain rules to notify you about the debt. If your debt has been transferred to a collection agency, and the agency has contacted you personally or sent you a verification notice, you should expect that this information will be reported almost immediately. Grace periods are usually reserved for those who have a good credit history, such as someone who missed a single payment and settled it within a few days.
Source: https://www.thebalancemoney.com/how-can-i-find-out-which-collection-agency-i-owe-960657
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