Can collection agencies buy from other collection agencies?
I am currently a student and unfortunately I experienced some financial issues to where I was unable to pay my tuition for the semester. (I have since stopped attending that university and enrolled in classes at a much cheaper community college where I am able to pay out of pocket) The original amount was approximately $10,000 and was sent to a collection agency. This was in May 2016. That collection agency charged 30% so my new balance came to about a little over $13,000. I figured that because they charged me 30% interest, I would let it sit there while I apply for loans to pay it off. Today (10/23/19) I got a letter in the mail from a completely different collection agency. It stated that my principle amount is $13,000 and some change (I am positive this is the same charge) and now the charge is a little over $4,000 . It comes to a total of over $18,000 (almost double the original amount)! My question is, do collection agencies buy from other collection agencies and if so is it typical for them to charge me even more interest? What are my best options for dealing with this? I am totally ignorant when it comes to these things and I'm not sure who to turn to. Please help. Thanks in advance ♡
- No MercyLv 73 weeks agoBest Answer
yes they buy from another collection agency but they do not buy it for the same price the charged u. if the first one charged u 13 k the second one could have bought it for 11k or even less. then they charge u as much as they want, nobody is there to stop them. also nobody returns anything to anyone, your original source of loan sold it to a collection agency for much less.
- Anonymous1 week ago
Its possible but a lot of times its not sold, it's simply transfered to another agency after the first one did not have any luck.
When I worked in collections, we never bought any accounts.
- StephenWeinsteinLv 73 weeks ago
Yes, they do buy from each other.
But you are confusing "fees" with "interest". They are are not the same thing.
- MaxiLv 73 weeks ago
Sure they do and each and every day the debt will increase, so get your act together and start paying it off
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- Ding DongLv 53 weeks ago
There is nothing saying they can't but they don't, there wouldn't be any profit in it. If you don't pay a debt collector they either go to court or if it's a small amount they give it back to the original creditor at a loss, they didn't pay much for your debt anyway.
- JudyLv 73 weeks ago