How can they do it?

[krisb74]

Maybe I'm not understanding this right or it's so obvious that I can't, but how does a collection agency get all of the information to collect on an account if they do not have the right to do so (do not own the acct or whatever)? We recently had one contact us, did the DV thing and have had no response or further contact from them. I don't understand how they can have this info then? Sorry if it's a 'duh' kind of thing, it's been that kind of day! Thanks-

Kris

[breathing_easier]

You're most likely dealing with a junk debt buyer (JDB), a company which buys accounts for pennies on the dollar from either the OC or the previous JDB. Actually, all they buy is a list of accounts bearing only the name, address, account number, and balance on the account. They are hoping that a percentage of the people they contact will simply agree to pay whatever the JDB says they owe (they've usually tacked on fees and interests). They don't like it when they're DV'd. Puts a kink in their gameplan.

[nevermore]

The CA generally buys a portfolio of debts from the OC, another CA, or a debt broker. This is generally just some sketchy info (data stored in a computer) about the debt and the debtor. Price of the debt generally depends on the age of the debt..... often a few pennies on the dollar. Another way a collection agency gets the info is if they are collecting on behalf of the OC. This is usually done on a percentage basis. The OC provides them with the basic info they need to collect the debt and if the CA needs more info the have to go back to the OC to get it. So basically a CA is collecting on a debt that they were told was owed with no real knowlege on whether it's valid or not.