I have a question, I once asked a collection agency if they had been assigned my account or if they had purchased it and they refused to answer, claiming they did not have to. Is this true?
Another question along these same lines. In the sample creditor disclosure statement found on this site is the following question What are the terms of assignment for this account? You may attach a facsimile of any records relating to such terms. My question. Does this indicate that you asking for terms between the original creditor and the collection agency or a signed agreement between you and the original creditor?
They have to prove to you that they have the authority to collect the debt, otherwise, you might pay them, when they don't have the authority, and end up still owing someone else, who actually does have the authority to collect it. So, the answer is, yes, they have to answer you, and not only that, they have to prove it.
Thanks Breeze, heres why I was asking. A few weeks back I sent this statement to a creditor in regard to a bill of my wife's. It was returned yesterday with an itemized bill, a form showing insurance payments and the form my wife signed upon being admitted. Now, on this form un the financial agreement section it states that you agree to pay the hospital, nothing about assignees. Thought it did state that the bill could include cost of collection/attorney fees. Now, as I understand it, they did not meet my request and provide proof that they have a right to collect this bill, would you agree? What would you suggest be my next step? This is my bill and I do have intentions of paying it but I do want a little time and do not plan on dealing with this collection agency.
I would just send them a Certified RR letter saying that this is not proof that they are authorized to collect this bill, and you will not pay anyone anything until you get that proof. They know what you want.
I meant my original question, I sorta sidetracked the thread. The first question at the top of the thread was asking if you can demand to know if the account was sold or assigned to a collection agency.
It's obvious what is meant when a debt is sold. But what is an assigned debt? What is a transfered debt?
Assigned is when the creditor turns the account over to a collection agency who receive a precentage of what they recover.
