Debt buyer
Debt, arrears & collectionsA company that buys unpaid debts and then collects them.
Overview
Debt buyers purchase accounts from lenders at a discount.
They become the legal owner of the debt.
Why it matters
- Your creditor may change even if the debt stays the same.
- The buyer may negotiate a settlement.
- You should verify the debt before paying.
FAQs
Can a debt buyer take me to court?
Yes, if they own the debt and legal action is appropriate.
Should I ask for proof of the debt?
Yes. It is reasonable to request confirmation before paying.
Related terms
Take control of your credit health
Get the complete credit toolkit — all features included.
Start building creditInstant setup. No credit check. Cancel anytime.