You should dispute anything you think may be inaccurate right away — after 30 days, the debt collector can legally attempt to collect the debt. But if you dispute the debt, the debt collector is legally obligated to verify the debt before proceeding with any collections action.

Can a collection agency look at your credit report?

Debt collectors have the right to review your credit reports, as long as they do so in conjunction with their effort to collect a debt from you.

Can a collection agency legally put their account on my credit report?

Once a debt is sold to a collection agency, they can begin reporting that account to the credit reporting agencies. The collection agency becomes the legal owner of the debt and has the right to begin collection efforts. Once reported, both the original account and the collection account will appear on a credit report.

Can a debt collector continue to collect on your credit?

After receiving your request, the debt collector has to send you proof of the debt. The collector also cannot continue collection efforts on the debt, that includes reporting the account to a credit bureau, until it has sent you proof of the debt.

What happens when a debt is sold to a collection agency?

Some collection agencies may both buy debts and also chase debts on a creditor’s behalf. Creditors will usually sell or ‘assign’ a large amount of debts to a debt purchaser. The debts will be sold at less than their face value, but the debt purchaser is entitled to collect the full balance. This is where their profit comes from.

When does a debt collector have to send you proof?

After receiving your request, the debt collector has to send you proof of the debt. The collector also cannot continue collection efforts on the debt, including reporting the account to a credit bureau, until it has sent you proof of the debt.