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Can I repay my original lender instead of a debt collector?

On Behalf of | Jan 6, 2017 | Credit Card Debt

After experiencing financial difficulties, you may be quite familiar with seeing notices from debt collectors, instead of bills from the original creditors. This is because after a debt has been delinquent for some time, many lenders sell the debt to a third-party collection agency, who then attempts to collect the amount owed. You, along with many other Eugene residents, may wonder if you are required to pay a collection agency instead of the original company.

For example, you might want to address your debt by repaying a credit card company directly, even after several months of receiving bills from a debt collector. Can you ignore the collection agency and begin making payments to the credit card company? The answer depends on the parties involved, states, but usually you will have to go through the debt collector after your original lender has passed on your debt to the third party.

Although it may seem irritating at first, repaying a collection agency is not necessarily a bad thing. Firstly, you will be addressing a debt, regardless of whom you are paying. You may also be able to negotiate better terms with a debt collector. In some instances, the collector may be willing to go lower on the amount you repay.

Bankruptcy is also an option you may wish to consider if you are having difficulties paying your debts. Since this area of law is complex, the information in this blog is meant for educational purposes only and should not replace the advice of an attorney.


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The Law Office of Kim Covington is a debt relief agency, and I have helped families, individuals and small businesses, file for bankruptcy relief under the U.S. Bankruptcy Code, for over 22 years.