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Question for the Money Doctors

Question submitted on Jul 5, 2011.

Question

If a collection agency attempts to collect a debt for a credit card company should I continue to send my payments to the credit card company or to the collection agency?

Answer

Thanks for the question.  Typically if an account is turned over to a collection company, then your credit card company has sold the account to them.  Therefore, you would pay the collection company instead of the credit card.  The collection agency now “owns” your debt instead of the credit card company.  However, I would verify this with your credit card company before making any payments.  Make sure that they have turned over your account to the collection agency.  Then, I would contact the collection agency and make a deal with them.  Offer to pay a certain amount per month until the debt is settled.  If you ignore them, they will continue to bother you for a long time.  Usually companies are much more willing to work with you when you communicate with them and come up with a plan to pay off the debt. 

I hope this helps.

Thank you,

Cory Colquette, CPA/PFS  


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