Does The Debt Collector Have To Get Permission For A Settlement?
In Florida, once a debt is assigned to a collection agency, does that agency need to get a settlement proposal approved by the original lending organization? For Example, once CreditCard assigns the debt to DebtCollector, and the Debtor proposes a settlement, does DebtCollector have to ask CreditCard if they approve of the proposed settlement or does DebtCollector actually own the debt and act independently of CreditCard? It seems to me DebtCollector probably bought the debt from CreditCard for pennies on the dollar and makes money by trying to get dimes on the dollar from an otherwise lost debt. Can someone explain how this works?
Re: Does The Debt Collector Have To Get Permission For A Settlement?
It would depend on if the debt was actually purchased or if the collection agency was merely collecting for the creditor.
If the first, the original creditor no longer has anything to do with the debt and the CA can do whatever they choose to.
If the latter, it would depend upon the agreement between those two entities.
Re: Does The Debt Collector Have To Get Permission For A Settlement?
Is there any way for me to determine which is the case, i.e. if the CA now owns the debt or is just acting on behalf of the original creditor?
Re: Does The Debt Collector Have To Get Permission For A Settlement?
ask the original creditor.
or you could ask the collection agency although the answer may be somewhat ambiguous intentionally.