Original Creditors vs. Collectors
Knowing whether you're dealing with your original creditor or a third-party collector matters, different rights and rules can apply depending on which one is contacting you.
Original Creditor
- Who They Are
- The company you originally borrowed from or owed money to
- FDCPA Coverage
- Generally not directly covered by the FDCPA
- Contact Style
- Often has a longer relationship history with your account
Collection Agency / Buyer
- Who They Are
- A third party contracted to collect, or that purchased the debt
- FDCPA Coverage
- Generally covered by FDCPA protections
- Contact Style
- Often a newer relationship, sometimes with incomplete records
How to Tell Which One You're Dealing With
Check the name on any letter or the caller's stated company name, it should differ from your original lender's name if a third party is now involved. When in doubt, request written validation, which collectors are required to provide. See Debt Collection Letters for what a legitimate notice should include.
Say your credit card statement always came from "Acme Bank," but you suddenly get a call from "Meridian Recovery Group" about the same balance, that's your signal a third party is now involved, and FDCPA protections that don't apply to Acme directly generally do apply to Meridian.