Any way to keep my debt from being resold?

Factual Questions
1

A few years back, someone pretended to be a family member and got a loan in our name. They tried, but couldn’t repay it, and it went into collections. We have audio of the impersonator opening the loan, and a police report we got as soon as we were aware what had happened.

Since then, we have been contacted every few months by various debt collection agencies. We have not been harassed by them. All of them have been professional, and they take no for an answer when the situation is explained. But then the next agency comes along a few months later. I assume that the debt is being resold from one collection agency to the next at a lower price as each becomes aware they won’t collect on it.

If this is what is happening, is there any way to stop this cycle?

Much thanks for any help!
(I searched some previous threads… could have easily missed something…)

2

Unfortunately I can’t answer your question. However, I would encourage you to keep monitoring your credit report, especially when you are contacted by a new debt collection agency, as it’s possible that they might “update” your credit report when they are assigned the debt and then not bother to remove it once they back off.

3

Wow.

I’m glad they’re not harassing you, but I gotta believe that it is illegal to sell an invalid debt. I suggest complaining to whoever it is that you’d complain to if it WAS harassment.

4

Sadly, it’s not illegal in the US to sell invalid debts for collection. As soon as you tell one collection agency that the debt is invalid, they’ll dump it on the next bottom-feeder so they can recover a few cents on the dollar rather than making the investment in time and staff costs to properly research it.

5

Make an appointment with a trustee in bankruptcy. The first visit is free usually. Tell him your story. My understanding is they’ll tell you that collections cannot now call you for 3-6 months depending on the rules where you live. You don’t have to file, just make an appointment for a consult. It’s part of the rules of bankruptcy, I think.

It may start up again after, but I know a couple of people who this worked for. It’s pretty easy, and might be worth a try.

6

If you’re not responsible for the debt, it’s not “your” debt to begin with. By saying it is your debt, that made me initially think that the debt was 100% legit.

7

If the debt is continually being re-sold from one agency to another, each time for a lower amount, won’t it eventually become conspicuously worthless, and thus burn itself out and disappear?

8

Not really. The collection agency is buying what it sees as a debt for $X. The fact that it was able to buy that debt for $0.000001 makes it a deal.

And it was probably bundled together and sold with a bunch of other debts, some of which may be collectible, to make the whole pacakge profitable.

9

In Arizona several years ago there was someone in the Secretary of State’s office that handled such cases.

10

Thanks for the answers all. It’s pretty much what I expected. There might be some tactics, , but there is no easy answer.

11

Perhaps I’m misunderstanding you, but are you seriously telling an otherwise solvent person to declare bankruptcy to avoid collection calls?

12

No, I’m not. But as soon as you book a consult with a bankruptcy trustee, collectors are forbidden to contact you for 3-6 months, even though you never file for bankruptcy. And the first consult is always free. It could be the easiest way to make it stop.

13

No, I’m not. But as soon as you book a consult with a bankruptcy trustee, collectors are forbidden to contact you for 3-6 months, even though you never file for bankruptcy. And the first consult is always free. It could be the easiest way to make it stop.

14

I don’t think the OP is in Canada, and we don’t have that rule here. A bankruptcy trustee in the US isn’t a permanent entity but some company or person appointed by the court subsequent to an actual bankruptcy filing.