Can a debt buyer legally agree not to sell an account in writing if you're make monthly payments?

Question

A Debt Buyer purchased my past due account from the bank, and offered me a settlement agreement to pay off 50% of the balance in in 36 months. When I asked if they could put in writing that they wouldn't sell the account as long as I'm making monthly payments, I was told they could not legally do that, because they don't know what the future holds. But they would agree to put in writing how many payments I'm scheduled to make, and that once I've paid off the debt I won't owe anything further to their office, and they would provide me with monthly receipts and the credit bureaus would show that I'm making payments. Is this standard? If so, what happens if the debt buyer goes out of business and I still have a balance?

By the way, since the bank sold this account, after I pay off the debt buyer, can the bank later come after me for money as well, or when they sold the account did that release them of all ownership and rights?

Answer 1

I gotta break down these questions a bit.

Collection agents either work for the original creditor, or they purchase the debt and will collect it for themselves. Either way, you are only dealing with one creditor/one contract.

The collection agent also has the right to negotiate payment arrangements, and any agreement will replace your current contract.

Therefore, be sure to get all the details in writing (amount and number of payments). Be sure that no interest or fees is being added. Most important, make sure that it clearly states that once the payments have finished, it will consider the loan "paid in full". Otherwise, they could sell any "excused" amount to another collection agency who will come after you again.

In the event this collection agency sells your loan to another agent, your contract will still be in effect, as it constitutes a legal "volation" of the contract. The only way it could be voided is if you defaulted on a payment. So don't miss any of your payments!

Answer 2

If the bank actually SOLD the account, the bank is no longer entitled to collect now, wither you pay or not. If the current OWNER of the debt agrees in writing to a repayment schedule, that schedule would be binding on all parties even if they sold the debt, for as long as it is followed. I don't know if they can legally agree not to resell the debt, but I bet the person you talked to just said that because they don't know either.