If My Debt Is Sold to a Collection Agency, Do I Still Have to Pay It?

View counts: 32843

Video duration: 00:03:01

Likes: 281

Stacy answers viewer’s and reader’s personal finance questions. Want to ask Stacy question? Sign up for the Money Talks Newsletter.
Click Here:

When you receive the newsletter in your email, hit reply and ask your personal finance question.

Go To YouTube Channel

how to dispute a collection on your credit report

You may also like...

27 Responses

  1. Michael Phillips says:

    Are you associated with any Banks

  2. Self Health Club says:

    Selling debt in the United States is illegal I know because I've used it myself to get out of a bogus court debt because it's a felony. This guy is full of shit.


    Please DO NOT listen to this guy!
    He obviously doesn’t know contract law!!!

  4. dragonore2009 says:

    I still have a foreclosure from 2015 on my report and the creditor keeps refreshing it, so annoying. The house did eventually get sold to my understanding, so it isn't as if the bank is out that much.

    On a lighter note, a different collections, one time I had blood work done and paid the bill, didn't think much of it. Apparently I didn't pay the whole thing, not sure how, but I still owed $5. They literally sent me a letter every week letting me know I owe $5. The money they wasted with postage, to collect $5? Why didn't the company just write if off, seriously FIVE DOLLARS.

  5. Somark Heng says:

    I need help please. I got scammed on my credit card. The maximum amount is 6000$ but that credit card bill ending up for 15000$ and they don’t give any records what the money spent on. That credit card for som reason if I pay 2000$ the next day will be back up to 4000$ or 5000$ it just like some one able to adjust it up and down what ever they want. I was reported to the banker they said it’s normal it nothing wrong. But I saw white my own eyes it just pop up the number from like 1500$ to 3000$ in a second. Not even one time that why I said some one able to adjust it up and down. And why the maximum amount is 6000$ how come it ends up to 15000$ in total. That not how the credit card company do. The sooner you get close to the maximum you will get restricted right. Even the highest interest it’s won’t be that much in just less than 2 years. And I reported it to close it a long time ago. One thing is surely is they never provide any report on what that credit card used for purchase what with what amount of money used. I am just feeling so bad for my self because I just try to help the young people that their parents passed away from what they told to make me feel I should help them. First I just chart with big sister only then she introduced me to her brother she told me that he had to go farther for work and she have to stay alone. I am just feeling so bad about it only have two person brother and sister the parents pass away what a life. Make me feel really pity them I can’t just stand n watch acting like nothing happens. I used to be poor almost have nothing to eat some day. So I kinda understand how it feels like when you struggle without money to even buy things to eat I feel really bad to hear it. I continue to help with whatever she or he asked

  6. Ronald Martinez says:

    How can I find out how much a collection agency paid for my debt

  7. TREEone says:

    Owned debt more than $1,000 and fees. It was about couples magazines. The manager was angry. I said " I reject it". They have no my SSA number in this case and no credit points credit points. I changed debit card number and my mobile number before Collectors call me. Haha. The agency send me two letters. I going be condemned if was the opposite This case was no problem.

  8. Dave Uk says:

    This fella hasn't a clue what he's on about does he not realise anything about contract law all contracts need a signature he obviously works for the collection agencies

  9. ClassicUniqueGifts says:

    My sprint account went into collections and they have been bought out by T mobile. I recently noticed that it disappeared from my credit report. Do I not have to pay it or will it re appear and that re appearance will hurt my score again?

  10. Ashleigh Rose says:

    Everyone is saying this guy is a fool but he's not wrong… the issue here is that in most if not all cases when you sign a contract with a company, somewhere in the fine print it states that if you default on a payment that you're debt could be turned over to a creditor to collect the unpaid amount and when your sign whatever contract weather it be a bank, credit card, cell phone plan. You're agreeing that if you don't pay they're allowed to sell your debt and that it is then ok for the collector's to come after you and that's what people don't realize and THAT'S what makes it legal. Now collections agencies can't harass you, they CAN NOT threaten you, weather it be to take you to court or to garnish your wages. Unless they have an actual lawyer working for them (which a lot of smaller agencies do not) now if you're messing with credit card companies and loan companies and you owe like hundreds of thosands of dollars than yes a lot of time they will take legal action, but for those cases you will usually get some sort of legal notice or summons not some guy on the phone and I'd they DO claim to be a. Lawyer ALWAYS ask for some sort of proof (a lot of scummy collectors will pretend to be a lawyer as a scare tactic) but if a small agency calls and their collectore threaten any sort of legal action or to garnish your wages and they're not a state certified lawyer than that is illegal and you can sue…. Idk I worked in collections and fucking hated it, I know what it's like to be broke and I always felt horrible having to call and ask people who clearly don't have the money, to pay me. But the best advice I can give is either ignore the debt and wait till it falls off your credit (7 years) or try and make a deal with the collector's and usually they'll drop the amount owed by A LOT there are usually tons of late fees and crap that they try to collect on but most of the time you can get them to come down close to if not right to the exact amount you ACTUALLY owe and usually they'll take it just to make what they can (somthing is better than nothing) or last option would be to seek a professional to help consolidate your debt and tackle it a little at a time.
    A LOT of times there are things on your credit report that are hurting your credit that shouldn't even be there and a professional can help you suss out what's important.

    Also a word of advice if you work out a deal with a debt collector to make payments and you don't intend to make the payments after the initial payment (which a lot of people do to get them off their backs) DONT bother doing it at all. Because another thing people don't realize is that when you default on a payment it takes 7years from your last payment to fall off your credit. So If you owe say a credit card company $500 and it's in collections for two years and you FINALLY have some extra cash so you decide to pay the collections agencies $100 to start tackling the $500 debt than you just prolonged the amount of time it'll stay on ur credit report. so if u pay the $100 than u don't pay off the rest than it'll be 7 years from that date that $100 payment was processed INSTEAD of not have ever payed any of it and just having to wait 5 more years for it to fall off your credit.

  11. A B says:

    Yeah he's lying.. I have seen discharged debt multiple times with ppl in these positions

  12. Sunny Days says:

    As per title if did pay in first place why pay it now.

  13. Lully Lew says:

    Only ever communicate with them in writing and use the right wording (legalise) to simply agree to pay the debt as long as they provide:
    1: The original instrument of endebtedness or proof it exists
    2: A: If it's a demand a copy of the contracts which create obligations on each party to perform (signed by you, them and a 3rd party witness IN WRITING) B: A deed of assignment.
    3: All notices of assignment
    4: The default warning letter
    5: The default notice
    6: Termination Notice
    7: The exact amount you have paid for this alleged debt.
    So yes you should pay it, if they can prove it's your debt to pay.

  14. MY VIDEOS says:


  15. DeltaRoots says:

    The collection agency has to show proof the amount they brought your debt for. Usually the companies cant.

  16. Brittaney Dixon says:

    So, the clock starts when they start reporting the debt?

  17. Vivian Williams says:

    Just received mines today im a beginner and i love it, I will get to the crossfit soon thank you

  18. kane harry says:

    I will advice everyone all over the world to stop wasting your money on fake brokers and scammers who promise you instant cash out. it's not as easy as you think. Please try to stay off because you would loose money. People who have lost money are so much and it gives a bad name to real investors. If you really lost alot of money in the name of bitcoin mining and binary option trading because you kept meeting the wrong managers. I work with recovery expert/consultants. I help people recover money they have lost from binary options crypto currency trading and bitcoin investment. You can reach out to me via jonhsmith3371@gmail.com and i will guide you on steps to take to recover all your lost money just in 3 working days.

  19. tran vu says:

    This is glorious, I've been looking for "how long can a creditor pursue a debt in canada?" for a while now, and I think this has helped. Have you heard people talk about – Donadelyn Stupefying Dominance – (Have a quick look on google cant remember the place now ) ? It is a great one of a kind product for discovering how to repair your credit minus the normal expense. Ive heard some pretty good things about it and my mate got cool success with it.

  20. Brandon Broner says:

    If you have medical bills in debt collections, that medical establishment violated Hippa

  21. 5273 ex rfn says:

    If a creditor sells your debt to a dca that debt is extinguished,no longer exists.1/ Original creditor claims of an insurance company.2/They make money from the tax on the debt.3/They have been paid by the 3rd party dca who purchased the debt.Your contract/agreement was with original creditor not the dca..Ask for proof of claim.Not onky that a dca has to be expressly named in the original agreement to have a claim..This guy is talking bull i'm afraid…

  22. Richard Martin says:

    You're very wrong on this and way up context.

  23. melly mel says:

    Don’t listen to this guy he’s wrong.


    I've been very satisfied with the services provided at Credit MasterFix, LLC credit repair team after finding link to their website [creditmasterfixllc. Com] on google because I had a lot of recommendation about them. They're so great and I've always found their services to be professional, user friendly, and thorough in handling business. I would recommend them to anyone in need of a credit repair or correcting credit cards payments. Very friendly, 100PERCENT responsive and reliable! you can look them[Credit MasterFix, LLC] up on google .

  25. Matheo Damien says:

    I am 100% contended and satisfied with the credit repair service provided for me at Credit MasterFix, LLC. I found about their team name Credit MasterFix LLC on google and the feed backs were astronomically strong and positive, you can look them up for similar related issues concerning your credit. CREDITMASTERFIXLLCdotCOM

  26. Richard steinburg says:

    I was in the process of repairing my credit and someone recommended Actify Solutions in CA here but this company scammed me out of $24k, I paid them $850 monthly but all they did was to make my credit look more horrible until I saw positively strong reviews about Credit MasterFix, LLC on youtube here 7 weeks ago, I looked them up on google and they're been my credit backbone, I now have 821 financial assessment.. You can check out their website creditmasterfixllc .com .

Leave a Reply