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RGMacEsq
RGMacEsq, Lawyer
Category: Consumer Protection Law
Satisfied Customers: 16213
Experience:  Licensed Texas General Practice Attorney
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I am a business owner who had a past due account go into collections.

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I am a business owner who had a past due account go into collections. I owed $1400 and made a good faith payment by online check for $200 with the promise to pay the balance between now and the end of the month when I get paid for work I have completed. Since that time (3 days), I had another collection agency call me and say that the original creditor had filed a civil claim against my company. How many companies can own this debt? Which one do I pay?

RGMacEsq :

Thank you for using JustAnswer. I am researching your issue and will respond shortly.

RGMacEsq :

Only one company can actually own the debt, but it's possible that the owner of the debt (even if it's a collection agency) can hire another agency to pursue that debt. Typically the owner of the account (such as a credit card company, etc...) owns that debt and hires a collection agency to pursue it. Sometimes the original owner will write off that debt (which is not a forgiveness of the debt, but rather an accounting procedure to balance the books) and sells the debt for pennies on the dollar. The purchaser can be a debt collector, and can "subcontract" the collection to another company.

RGMacEsq :

Now that being said, I would certainly ask for verification from the second debt collector, as well as the first, as to whom actually owns the debt and on whose authority they're collecting the debt.

RGMacEsq :

Send a demand letter demanding verification of the ownership and the collector's authority to act within 30 days, otherwise you will cease communication and consider pursuing legal action against them pursuant to the Fair Debt Collection Practices Act (FDCPA, which in reality doesn't apply to business debts, but they might not know that and might be frightened into giving you this verification. Send this letter certified, return receipt requested, as well as a copy sent regular mail. Keep a copy for yourself, as well as the return receipt number so that you can show the court that you made a demand for this information should it come up.

RGMacEsq :

Hope that clears things up a bit. If you have any other questions, please let me know. If not, and you have not yet, please rate this answer either a 3, 4, or 5 (good or better). Please note that I do not get any credit for this answer unless and until you rate it that way. Thank you, XXXXX XXXXX good luck to you!

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