Quick answer
A debt buyer buys unpaid debts from creditors or other debt buyers, often after charge-off. If a debt buyer contacts you, verify the current creditor, original creditor, claimed balance, and account history before paying.
Why it matters
The practical meaning.
Debt buyers can own the account, but account records may pass through several hands. That makes validation, dates, documentation, and duplicate reporting especially important.
Key points
1.
A debt buyer is different from a collection agency working only for another creditor.
2.
Validation information should identify the current creditor and provide information that lets you recognize the debt.
3.
Debt buyers may collect directly, use law firms or collection agencies, or resell accounts.
