Quick Answer: Two collection agencies can legally collect on the same debt if the creditor transfers the account, but the debtor should receive written notification within 5 days of initial contact. The person’s consistent payments to NCO for two years should have been properly credited, and United Recovery Services’ lawsuit threat may be improper without proper account transfer documentation.
“Dear Jeremy,
Paying NCO for two years now on time and consistent for AmEx debt. Suddenly, in the last two weeks, my father who has Alzheimers was contacted by United Recovery Services regarding a debt with AmEx and was asked where I was, what my information was, etc., to try and collect? I contacted United Recovery Services and they say they are going to sue because I haven’t paid my account. ???? I attempted to contact NCO, they have not credited my AmEx account. I have all the checks, and information demonstrating my consistent payment over the last two years. I really don’t know who to contact or how to have this resolved with American Express/United Recovery Systems.
Can two collection agencies collect on the same account????
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Dear Charon,
Your situation raises a lot of red flags in my mind. If you have a valid settlement agreement and were paying on time with a debt collector I don’t think it would be proper for a another debt collector to threaten you with a lawsuit on the same debt. I am glad to see that you have kept records of all your payments.
It is possible that a creditor can send an account to one collector for a time and then to a different collector later. If that is the case you should have received notification from the collector in writing within 5 days of their initial communication regarding the debt. If you were consistently making payments on the debt and they did not credit your account that would not be proper either.
Moreover, a debt collector is entitled to only one call to a relative to find out your location information. If a debt collector discloses details about your debt to any third party without your prior consent it might be improper. Sounds like you should definitely contact an consumer rights attorney in your state as there are a few issue you would want analyzed by an expert.
Jeremy Golden, Esq. is one of the resident debt experts here at GetOutOfDebt.org that helps people for free. Jeremy is a consumer rights attorney licensed to practice in California. He represents individuals in cases against debt collectors for violations of the FDCPA. He also focuses on defending people in collection cases who have been sued by their creditors or debt- buyers. In the last five years he has won at trial or obtained a dismissal in over 200 collection cases. Recently he was voted one of San Diego’s Top Attorneys in the field of Consumer Law by SDMetro Magazine. His website is goldencardona.com
Legal Disclaimer: This is for educational purposes only. It is not to be relied upon as legal advice. It also does not create an attorney-client relationship. No such relationship is formed with attorney without a written agreement.
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