Get Out of Debt Guy

My Old Credit Card Account Keeps Getting Passed to Collectors

Posted August 26, 2013

WRAL Reader Question

Dear Steve,

My Bank of America account went delinquent and went to collections due to my inability to pay the monthly fee (which I was not successful in reducing monthly payments due to hardship).

My BofA account was then placed with Budzik & Dynia, LLC in May of 2012 (have the original letter), which I then contacted and made payment arrangements. (They offered and actually pushed me to do a pay off which I declined).

Then in the summer of 2012, Budzik & Dynia then handed my BofA account onto NCO Financial, which Budzik and Dynia did not have the courtesy to notify me.

I again had to make payment arrangements through NCO. Fast forward to July 2013 (just last month) when I received yet another letter from Tritrium Card Services (The New Science of Collection) stating that my BofA account has been handed to them and a letter explaining a payoff ensued.

My question is, why are these collection agencies handing my accounts off to other agencies and is this legal? Each time I submit my bank account information for automatic payments I feel like they own my financial information. I feel this is wrong. Shall I proceed to make monthly payments with the new Tritium Card Services? I am in no position to do a pay off of my remaining balance.


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Dear Lynn,

Just because an account is with a collection agency it may have been assigned to a collection company or even sold to a new debt buyer. There isn't any way to tell without a bit of investigation.

But at this point your account has been passed around so much I am certainly not confident the new collection company even has the authority and documentation to collect on the account. 

Let's take a deep breath and a step back and find out if the collector can even proceed with collection. Read "Debt Collection Form Letters to Stop Debt Collectors in 5 Different Situations," here. You will find the appropriate letter to send before you admit to the debt. Let's get the collector to validate the debt before you do anything.

If the debt collector can't validate the debt you might not have to pay anything. The current debt owner might not have the necessary documentation to prove their ownership. 

If the debt collector can properly validate the debt and the amount demanded is out of your reach, you might want to consult for free with a local bankruptcy attorney

It seems as if this situation has just been dragging along. Now is the time to deal with this one way or another and start looking forward, rather than back.

Steve Rhode
WRAL Get Out of Debt Guy

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About this Blog:

Steve Rhode has had careers in opthalmology, real estate and as the head of a nonprofit debt counseling firm. On his blog, he offers hard-won, free advice about getting out of debt, consolidation and making the right choices as you manage your money.