How to Check if You Owe Collection Agencies

When a person fails to make payments on an unsecured debt -- which is a debt not attached to collateral like a car or house -- the lender typically write the debt off and sells it to a collection agency. The collection agency is legally able to pursue you for repayment of the debt, even though the collection agency is not the initial creditor. There are a few ways to find out whether you have any accounts in collection and determine whether the accounts actually belong to you.

Instructions

1

Obtain a copy of your credit report from each credit bureau through the Annual Credit Report website. This website allows you to get one free report per bureau per year (see Resources).

2

Look over the credit report, paying particular attention to the area that lists collection accounts. If there are any accounts listed in this area, it means that a collection agency is reporting you as the debtor on an account.

3

Contact the collection agencies listed on your credit report to find out more about your debts. It is also quite likely that these agencies have contacted you by mail or by phone in the past to try to collect on the debts.

4

Request verification from each collection agency that the debt belongs to you. The agency needs to provide the name of the original creditor, the amount of the debt and a document that proves that the debt belongs to you.

5

Work out a payment plan with each collection agency if you would like to pay off the debt. If you do not pay, the agency can sue you and, if it wins, garnish part of your paycheck or bank account.