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Two collection agencies, same debt


bigdaddy2
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It happens. There are a number of possibilities but the bottom line is that you are probably dealing with an administrative screw-up on either the part of the OC and/or current Debt holder or one or both of the CAs.

In any case, your response should be the same – start the DV process with both CAs.

In the letter you write to each CA, carbon copy the other CA (and the OC or current debt holder if you know who that is) and, as part of what you are requesting for validation, request that each CA explain why the other CA is also claiming to have the right to collect the same debt at the same time.

I highly suspect you won’t hear anything and the account will be withdrawn and then later assigned to another (and hopefully only one this time) CA that you can start the DV process with.

And no, unfortunately, this screw-up does not impact the ultimate collectability/legitimacy of the debt but I would say that both CAs cannot have the right to collect the same debt at the same time!

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I basically agree with what Robert says, but as I said in your nearly identical post in the Debt Validation forum, I don't think this is necessarily a screw-up. I seem to remember reading that sometimes a debt holder will assign the same debt to multiple Collection Agencies, to create a "competition", in the hope of boosting overall collections.

DH

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I had this happen last Sept-Oct. Pinnacle had assigned the same account to two CA's. Both were asking for different amounts. I sent a FOAD to both CAs since my debt is way, way past the SOL. I also filed a copmplaint with my state DAs credit investigative unit. That is what got Pinnacle off my case in a heart beat. If you have a state DA consumer credit office, use it.

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