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In fact, once the lender has hired a debt collection agency, you will make payment directly to the agency instead of the originalcreditor. A collection account is a debt turned over to a third-partydebtcollector or a debt collection agency because the borrower has failed to pay it as agreed.
The Fair Debt Collection Practices Act (FDCPA) applies to collection firms and debtcollectors attempting to recover consumer debts. Consumer debts include credit card debts, vehicle loans, medical costs, and school loans. Falsely stating the legal repercussions or remedies if a debt remains unpaid.
Once your debt is charged off, your creditor will send a negative report to one or more of the credit reporting agencies. It may also attempt to collect on the debt through its own collection department, by sending your account to a third-partydebtcollector, or by selling the debt to a debt buyer.
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