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Knowing Your New Creditor

April 17, 2012 | Comments: 0 | Views: 95

It is a common practice among creditors to sell debts to other companies. Once the debts are sold to them, the debt collection agencies would be the one to deal with the debtors. This is the reason why you may be surprised that another company is already sending you the bills or reminding you about your payment obligations. The new company is actually the one that bought your debts. Because of this, you no longer have any obligation to the former creditor but to this new one. If you have to make payments, this new creditor would be the one to receive it.

Obviously, it would be foolish if you would not take any step at all to learn about the identity of your new creditor. The mere fact that this would be the recipient of your debt payments should compel you to know more about it. There may even be instances that your former creditor would forget to inform you that your debt would be collected by another entity. Since this involves your money's security, you should really get to know about your new creditor. The easiest way to do this is to contact your former creditor and ask information regarding the identity of the company that would be collecting your debt.

The representatives of your former creditor would only be very glad to help you in providing you information regarding the name of the debt collection agency. Aside from the identity, they may also supply you with the contact number as well as the office address of the said company. Such information would certainly be important if you are planning to communicate with the said agency. You may want to negotiate for more lenient treatment regarding your debts. Of course, if you do not know the name of the new creditor, you would not know whom to talk with.

The truth of the matter is that when your debt is in the hands of a collection agency, the attempts to make you repay could be more intensive. The pressure could be very overwhelming that you may wish to run from your obligations. Of course, you should never go to such extent. The best that you could do is to deal with the collection agency. While negotiating with them, you should not forget the fact that you are not dealing with just a collection agency but a new creditor. This means that they could actually decide on the status of your debts.

If you feel that you could not deal with the debt collection agency yourself, you should not hesitate to seek help from those who have the experience in negotiations. It would be best that you get one who is also very knowledgeable about the laws governing debts and other related concerns. This means that you may have to find yourself a lawyer. Of course, before you could really get to this level, the first thing that you should do is to know your new creditor or the debt collection company.

Jim Oneil is a writer with a special interest in debt issues and personal finance. He has written for small local newspapers in the past and now devotes part of his time writing about debt consolidation and management tips and also UK based financial products.

Source: EzineArticles
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