credit dispute?

Question

Was curious if anyone knows about wether or not a collection company can still charge you if the company you originally had the account with went bankrupt? Someone told me that if the collection agency has no way of getting a hold of the company that sold them the account then they can't prove any balance due and therefore cannot charge you or keep it on your credit report? Especially if they do not have an itemized bill with dates of service, right?

Answer 1

Yes they can. Collection agencies purchase the debt owed from the company the debt is owed to and now owns the debt.

Answer 2

While you may still owe the debt (as long as it "is" yours and the amount "is" correct), they may have problems proving it if you request validation and they do not have access to the original creditors files.

Per the FTC Wollman "opinion" letter, validation/verification must come from the files of the original creditor.
http://www.ftc.gov/os/statutes/fdcpa/letters/wollman.htm

And, before discussing payment with the collection agency, a person should always request validation, to make sure the debt is truly theirs, the amount is correct, that the collection agency has the right to collect, that the agency is licensed and/or bonded to collect in the persons state (if the state requires it) and that the debt has not passed the collecting SOL.

Answer 3

The collection agency has all rights to collect the debt and it stays on your credit report if you don't pay. Sorry.

Answer 4

Sorry. You still have to pay them.

What is the difference between borrowing money and refusing to pay it back and stealing? If you really think about it I think you'll agree that the RIGHT thing to do is to honor your word and pay your bills. Don't choose to be a victim - choose to be a responsible person.