Selling Debts?

[RangerGirl111]

What is the name of your state? FL

I just recieved a phone call, ironically enough, from a debt collection agency referencing a debt that I supposedly owed from over 2 years ago. The debt was owed to a company that is now out of business. I had no clue about the debt, and the address they referenced was not one that my parents had been at for years.

Is this legal? They don't know exactly what the debt is for, just that it had to do with some physical therapy equipment that I had supposedly used-- it might be left over taxes is what the representative told me.

How should I handle this matter? I can't afford any more negative medical debts on my credit report-- but I don't want to be conned out of money I had no idea I owed til I received a phone call from this 'agency.'

 

[Debt Guy]

Is it legal? Yes.

Just because the company is out of business does not mean the debt has "vanished". It still exists and was likely sold to a 3rd party from the corpus of the original company. That new owner now has the right to collect the debt.

If you don't recall the debt, you need to ask for validation. Do so in writing and by certified mail return receipt. Keep it simple. Just say "I don't recognize the name of the creditor, original creditor and have no recollection of the debt you claim. Please validate the debt as required under the Fair Debt Collection Practices Act"

They may or may not go away. They may or may not report it to the credit bureaus. You may or may not get a response from them on the request. If they do any of those things and you think they have violated the law, then all you can do is sue them. Lots of trouble and aggravation.

google FDCPA and read up