IS IT ILLEGAL FOR A COLLECTION AGENCY TO BUY YOUR DEBT AND COME AFTER YOU? 906, DLF Tower-A, Jasola District Centre, New Delhi Head Office (New Delhi, India) MNS Credit Management Group Pvt. Ltd. www.mnscredit.com
INTRODUCTION
When you are unable to pay your debts, the original creditor may sell your account to a debt collection agency. The agency then becomes the new owner of your debt and can attempt to collect payment from you. However, some people may wonder whether it is legal for a debt collection agency to purchase their debt and pursue them for payment. In this article, we will explore the legality of debt collection agencies purchasing debt and coming after debtors.
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What is a debt collection agency?
A debt collection agency is a company that specializes in collecting unpaid debts on behalf of creditors. These agencies may purchase debt from original creditors or may be hired by creditors to collect on their behalf. Debt collection agencies use a variety of tactics to collect payment from debtors, including phone calls, letters, and legal action.
Is it legal for a debt collection agency to purchase debt?
Yes, it is legal for a debt collection agency to purchase debt from original creditors. When a creditor sells a debt to a collection agency, the agency becomes the new owner of the debt and has the legal right to collect payment from the debtor. The sale of debt is a common practice in the financial industry and is regulated by federal and state laws
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Can a debt collection agency come after you for payment?
Yes, a debt collection agency can come after you for payment if they own your debt. When a debt collection agency purchases your debt, they have the legal right to collect payment from you. They may use a variety of tactics to collect payment, including phone calls, letters, and legal action. It is important to note that debt collection agencies must follow certain rules and regulations when attempting to collect payment from debtors.
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What are your rights when dealing with a debt collection agency?
If you are being pursued by a debt collection agency, it is important to know your rights. Under federal law, debtors have certain protections when dealing with debt collection agencies. For example, debt collection agencies are prohibited from using harassing or abusive tactics when attempting to collect payment. They are also required to provide certain information to debtors, including the amount of the debt, the name of the creditor, and information on how to dispute the debt.
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CONCLUSION
In conclusion, it is legal for a debt collection agency to purchase your debt and come after you for payment. When a debt collection agency purchases your debt, they become the new owner of the debt and have the legal right to collect payment from you. It is important to know your rights when dealing with a debt collection agency and to understand the rules and regulations that they must follow. If you are being pursued by a debt collection agency, consider seeking the advice of a financial professional or an attorney.
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