How to Settle if My Debt Is With Two Collection Companies

When a creditor charges off an account, the creditor may choose to assign the account to a collection agency. If a collection agency is unable to successfully collect on a debt, then the debt may be passed off to another collection agency. When the debt is switched between several different collectors, you may see several collection accounts on your credit report. However, only one collection company can actually collect on the debt.

Instructions

1

Call the original creditor for the account and ask which collection company owns the debt. If the collection agency sold the debt, the creditor may not know specifically where the debt has been sold.

2

Look up each collection agency's address, using the information on your credit report or by searching for the company name. Send each collection agency a letter asking for the collector to validate the debt and prove that it is the legal collector for the account.

3

Send these validation letters using certified mail with return receipt requested. Certified mail is used to create a paper trail and keep track of dates if the collection agency has a dispute.

4

Contact the collection agency that legally holds your account to make payment arrangements with the company.