I was just thinking about this and I know there must be a perfectly good explanation, but to me, what gives a collection agency the right to report their business dealings with debtors to the CRAs since the debtor typically didn't agree to do business with the CA in the first place. To me, it seems like it's nothing more than a type of legalized blackmail to encourage debtors to pay off delinquent debts.
Good question. This is just a guess, but I'm assuming the original contract you signed likely passes the right to collect/report to the CRAs along to any 3rd-party collector the OC chooses to represent them. Of course, if the OC charges off the debt and sells it to a CA, then the CA now legally owns the debt and has the right to collect/report as well. Anyone else have some insight?
