How to Locate Accounts Owed to Collection Agencies

Ignoring a debt can have severe consequences. Missing payments to your creditors damages your credit rating and may result in your debt being remanded to a collection agency (See References 1). Not only will the collection agency add its account to your credit report, but if you owe more than $100, a collection account causes additional damage to your credit score (See References 2). The Federal Trade Commission warns consumers to make payment arrangements with collection agencies to avoid lawsuits that can result in a bank levy or wage garnishment (See References 3). Paying off old debts prevents lawsuits and gives you peace of mind. A collection account can be sold repeatedly; therefore you must track down the current owner of the debt in order to make a payment.

Instructions

1

Pull your credit report and locate the original creditor and account number for the debt. The original creditor is the company you owed the debt to before it was sent to a collection agency.

2

Call the original creditor. Give the customer service representative your name and the account number. Ask the customer service representative which collection agency the original creditor sold the debt to.

3

Compare the customer service representative's response to the collection accounts listed on your credit report to find the correct collection agency and account number. The collection agency's account number for the debt is likely to differ from the original creditor's account number.

4

Call the collection agency and inquire about whether it still owns the debt. If not, ask which company purchased the debt.

5

Check your credit report again. Compare the information the collection agency representative gave you with the collection accounts listed on your credit report to find the correct creditor and its contact information.

6

Contact the correct collection agency and arrange to make payment. If the debt itself or the amount the collection agency states you owe is inaccurate, send a written request to the collection agency seeking full validation of the debt. Section 809 of the Fair Debt Collection Practices Act allows you to request a debt validation if you suspect that the collection agency made an error (See References 4).