Receiving calls concerning old debts you were unaware of can be quite perplexing in and of themselves, let alone receiving calls concerning the same debt from several sources. Believe it or not, this happens all the time. Although it may not always be fraud, it could indicate that you have rights under the Fair Debt Collection Practices Act (FDCPA) that have been violated at some point. In this case, not only will you not owe the debt, but they may also owe you damages. Let me explain.
Debt collection can be a confusing and frustrating process, especially when you’re unsure about the legitimacy of the debt or the rights you have as a consumer One common question that arises is: how many times can a debt be resold?
Understanding the Debt Reselling Process
When you owe money to a creditor, such as a credit card company or a medical provider, and you fail to pay it back, the creditor may choose to sell your debt to a third-party debt collector. This is often done when the creditor has exhausted its own efforts to collect the debt
The debt collector then purchases the debt for a fraction of its original value and attempts to collect the full amount from you. However, the debt can be resold multiple times as different debt collectors try to recoup their investment.
There is no legal limit to how many times a debt can be resold. As long as the debt is valid and the debt collector follows the Fair Debt Collection Practices Act (FDCPA), they can continue to attempt to collect it.
What This Means for You
If you’re being contacted by a debt collector about a debt that you believe has been resold multiple times, it’s important to understand your rights under the FDCPA. This law protects consumers from abusive and unfair debt collection practices.
Here are some key things to keep in mind:
- Debt collectors must provide you with written validation of the debt within five days of initial contact. This validation notice should include the amount of the debt, the name of the original creditor, and the date the debt was incurred.
- You have 30 days to dispute the debt. If you believe the debt is not yours or that the amount is incorrect, you can send a written dispute to the debt collector.
- Debt collectors cannot harass or abuse you. This includes making repeated phone calls, threatening you with legal action, or contacting your employer or family members about the debt.
If you believe a debt collector has violated your rights, you can file a complaint with the Federal Trade Commission (FTC) or your state attorney general’s office.
Additional Resources
- Fair Debt Collection Practices Act (FDCPA): https://www.consumer.ftc.gov/articles/debt-collection
- Federal Trade Commission (FTC): https://www.ftc.gov/
- Cardoza Law Corporation: https://www.cardozalawcorp.com/
Frequently Asked Questions
Q: Can I be sued for a debt that has been resold multiple times?
A: Yes, you can be sued for a debt that has been resold multiple times. However, the debt collector must be able to prove that you owe the debt and that they have the legal right to collect it.
Q: What should I do if I’m being contacted by a debt collector about a debt that I believe has been resold multiple times?
A: The first thing you should do is request written validation of the debt. Once you have received the validation notice, you can review it and decide whether you want to dispute the debt. If you believe the debt is not yours or that the amount is incorrect, you can send a written dispute to the debt collector.
Q: What if I can’t afford to pay the debt?
A: If you can’t afford to pay the debt, you may be able to negotiate a payment plan with the debt collector. You may also want to consider seeking help from a credit counselor or debt management company.
Remember, you have rights as a consumer. Don’t be afraid to exercise them.
How This May Mean You Have a Case
Whoever is getting in touch with you regarding the debt must be able to offer proof of the debt’s legitimacy. They must demonstrate your debt, who you owe it to in the first place, and that you are the one who owes it. As debts are sold again and again, documents and contracts are often lost. A debt collector is breaking the law if he contacts you before he has all of this paperwork in order.
Debts Are Often Sold Multiple Times
It is often not worth a creditor’s time to work too hard make you pay what you owe. After all, collecting debt is not their primary role. The creditor could be your town’s tax department, a medical facility, a cable or cell phone provider, or a credit card company, which exists to lend money and collect it. These service providers will bill you for a few months, maybe adding fees for each month you fail to pay, and maybe giving you a follow-up call, but that’s about all the time and resources they have available. After that, they will likely sell the bill to a collection agency. Even if they only get 10 cents for the dollar when they sell it, at least they still get their money back.
The debt collector can now pursue collection on the entire debt that they purchased for a small portion of that amount. And they are often successful. When a collection agency calls, people feel more threatened than when the cable company does, for example, and many of them pay up without protest. Nevertheless, the debt collector will likely sell the debt to another organization, perhaps for 25 cents on the dollar, if he has tried multiple times to collect the debt from you without success. He’s turned a small profit, and now your information is in the hands of a third party who will contact you. This is how you wind up with several agencies attempting to collect the same debt, but despite how it may seem, you are not in any worse situation than you were when you initially missed the payment.