Quick Answer: A debt being sold twice to different collectors suggests potential fraud or administrative error, which is illegal under debt collection laws. The debtor should demand debt validation from the new collector, document all previous payments made to the first company, and consider filing complaints with the CFPB and state attorney general.
I had a debt with Sears store card and the debt was bought by a third party. This company (debt collector) send me several settlement offers until I accept one for half what I own to them. I started to make payments as promised and by the very last payment they did not take it and weeks after that I got a call and letters from a new debt collector claiming the amount that was left.
I send this new collectors a letter rejecting the mentioned debt since I already made payments to another company but now I think I’ve been a victim of a scam or fraud.
What can I do now?
Every weekday I read the enforcement actions, filings and fine print the outlets skip, and turn them into the one or two moves that actually improve your position — a rate worth moving for, a fee you can refuse, a deadline to beat before it costs you.
In the latest issue (Oct 6): When fear picks your debt plan
I write Your Money Actually most weekdays — actionable money information you will not find anywhere else, and the small decisions that compound. It is free, I sell nothing, and I take no money from any company I write about.
This is your chance to be a hero and help out this person by providing your feedback and answer to the question in the comments section below.
Know Your Rights: If a debt collector is contacting you, you have legal protections. See the complete list of FDCPA violations collectors commit most often. Use the free Debt Validation Letter Generator to demand proof of the debt, or check this collector’s complaint history with the Scam-O-Meter.
Dealing With Debt? Before you pay a collector, understand all your debt relief options — including ones the collector won’t tell you about. If the debt feels unmanageable, take the 2-minute bankruptcy quiz to see if the math favors a fresh start. Federal Reserve research shows filers recover faster than those who don’t file.
Hi Jo,
Please reply in the comment section with the name of the first collector you paid and the current collector attempting to get more out of you. It is important to identify companies publicly. It would be interesting to learn if the collection company you made the deal with is one who has recently participated in public comments with regulators about fairness in collection laws and rules. Same goes for the collection firm you are hearing from now. It would also be interesting to know who they are collecting on behalf of (debt purchaser) in each instance.
Pull together all documentation of the settlement; the letter inducing you to agree to settle with payment terms; all monthly bank statements that show the payments you made; the monthly bank statement for the month where your final payment was to be drafted which would show that on the day your final payment was to be deducted you had sufficient funds. Keep this documentation in a safe place.
You mention that you already sent a letter. Did you send it certified return receipt?
I know what I would do next if I were in your shoes, but before I comment on that, please comment with answers to the above questions.
Hi Jo,
Please reply in the comment section with the name of the first collector you paid and the current collector attempting to get more out of you. It is important to identify companies publicly. It would be interesting to learn if the collection company you made the deal with is one who has recently participated in public comments with regulators about fairness in collection laws and rules. Same goes for the collection firm you are hearing from now. It would also be interesting to know who they are collecting on behalf of (debt purchaser) in each instance.
Pull together all documentation of the settlement; the letter inducing you to agree to settle with payment terms; all monthly bank statements that show the payments you made; the monthly bank statement for the month where your final payment was to be drafted which would show that on the day your final payment was to be deducted you had sufficient funds. Keep this documentation in a safe place.
You mention that you already sent a letter. Did you send it certified return receipt?
I know what I would do next if I were in your shoes, but before I comment on that, please comment with answers to the above questions.