Account Sold to Three Different Debt Collectors - Can They Do That?

Reader Question: In 1999 I got a cell phone. Some miscommunication happened from their end, and I refused to pay the bill. It seems that this has been sold to three different debt collectors. Is that legit? Can they keep selling it over and over again?

Yes, the original creditor can sell the account to one collection agency. That company can then sell it to another, and so on. But what they cannot do is report it more than once on your credit report. For example, if two or three collection agencies are reporting the same account to the credit reporting agencies, then you should dispute it. Of course, the only way you can know this is by reviewing your credit reports once or twice a year.

Of course, if it's been 10 years since this item was first sent to collection (since 1999), then it probably won't even show up on your credit report anymore. Negative items such as missed payments can only stay on your reports for up to seven years. Check out the Fair Credit Reporting Act if you want to learn more about these restrictions.

Here are some related Q&A sessions I recommend reading:

Collection Agencies Reporting the Same Account Twice
This person wrote in to ask a similar question -- whether it was legal for multiple debt-collection companies to report the same account to the bureaus.

Duplicate Entries Can Hurt Your Credit Score
This posting gives a good overview of what a duplicate entry is, and what you can do if you find them on your reports. It also dispels some common misconceptions people about this topic.

I hope that answers your question. Take care.