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nonya17

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I was told that as long as you do not agree to a contract with a collector ,I do not owe them .
Is this true or just a fallacy My contract is with a specific company , I have no contract with the collector. How could I possibly owe them ?

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I guess they saw you coming......

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Because there is likely a clause in your contract to allow the original creditor to not only sell your contract (as property) to a collection service, but there is also likely a clause in your contract that allows that collection company to collect the entire balance along with any additional fees added to your total balance as a result of the charge off from the original creditor.  This is typical of most creditor contracts and pretty much standard operations for creditor contracts.

Try putting the shoe on your own foot and walk a mile.  If you were considering loaning money to a complete stranger, you would want to know you were able to get your money back; even if that person defaults, you want insurances that at least a portion of that money will be collected overtime.  Since you are a creditor, and not a collection professional, you would likely make that person sign a contract with those clauses included to not only allow you to sell the debt to a professional collection company, but to also reduce your legal liability in the collections process.

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