Legal Question in Credit and Debt Law in Nebraska

Transfer of Debt to Collection Agencies

What does a business mean when they turn over a debt to a collection agency and tell you they can no longer accept payment and that you will have to send payment to a collection agency?


Asked on 3/01/04, 3:23 pm

1 Answer from Attorneys
Volker Hirsch RA Hirsch

Re: Transfer of Debt to Collection Agencies

I am not a Nevada attorney but according to the general rules of contract it means that they have assigned their claim to the debt collection agency. Therefore, now the latter has become the creditor of the claim against you.

Under the laws of most countries you would however still be able to settle by payment to the original creditor as well - unless you have been notified before of such assignment to the debt collection agency.

Kind regards,

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Answered on 3/01/04, 5:07 pm


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