I'm going back and forth with a 3rd party collection agency and was wondering if a 3rd party collection agency can lawfully collect a debt if there is no contract between the collection agency and the original creditor that expressly transfers the legal right to collect this debt to the collection agency.

In other words...if a person had a contract with company A (original creditor); and company A sells the account to company B (3rd party collection agency); can company B lawfully collect this debt if there is no contract between company B and company A? [Also, assuming, there is no contract between company B (collection agency) and the person who owes the debt (debtor)].

If the answer is that they can lawfully collect the debt, even if there is no contract between the collection agency and original creditor or debtor; what gives them the legal authority to do so?

Thanks in advance!!

Fr_Chuck

If company A SELLS the debt to company B there is a contract, the sells agreement, and company B now owns the orginal contract between the debtor and the orgianal company.

It is where a collection agency only works on behalf of company A but does not buy the loan, where there has to be a formal agreement.

Once the debt is bought, it is thiers to collect since they own it.