Original Creditor
Original creditor summary:
An original creditor is a person or company that provides a loan or advances credit to you.
You usually make an agreement to pay back an original creditor.
If you don't repay your debt, an original creditor may hire a debt collector or sell the right to collect your debt to a third party.
Original creditor definition and meaning
An original creditor is a person or business you borrow from and have an agreement to repay. Examples include:
Bank that loans you money to buy a house
Credit card issuer that advances you a line of credit up to a specified limit
Auto dealer who finances your car purchase
Hospital you agree to pay for treatment
Key concept:
An original creditor is a party that grants you credit or makes a loan that you agree to repay.
More about original creditors
An original creditor lends you money or provides credit for goods or services, and you agree to repay what you borrow. If you don't pay what you owe, an original creditor may pursue you for repayment by contacting you, reporting your missed payments to credit bureaus, or even taking you to court.
An original creditor could also hire a debt collector to get you to pay what you owe. Or it may sell the right to collect the debt to a third party that could be a debt collector or a debt buyer. You don't sign agreements with debt buyers or debt collectors. But they can try to collect a debt if they can prove that you owe the debt and have the right to collect it.
Original creditor: a comprehensive breakdown
The Fair Debt Collection Practices Act (FDCPA) governs debt collectors, but not original creditors, and it provides certain rights to consumers, including the right to:
Know who's contacting you and why
Validation of the debt
Stop contact from debt collectors
Protection from harassment, abuse, and false statements
Sue a collector that violates the FDCPA
Other laws apply to original creditors. Some states have enacted versions of the FDCPA that apply to original creditors. What about debt buyers? Courts have determined that debt buyers have to follow the FDCPA if their main business is collecting debts. For example, a collection agency's usual business is collecting debts, so it must follow the FDCPA even if it bought your debt.
Original Creditor FAQs
Who can sue me for credit card debt?
The original creditor (your credit card company) can sue you. So can a collection agency hired by your credit card company. And so can a debt buyer, who purchases your debt at a discount. Whenever you’re sued or receive a collection notice, make sure that you owe the money and that the collector has a legal right to pursue for it.
Does my credit card company have to stop calling me if I ask them to?
The Fair Debt Collection Practices Act (FDCPA) requires debt collectors to stop contacting you if you request it in writing. However, your credit card company is an original creditor. That means you agreed to follow the terms of your credit card agreement, including paying back what you owe. The FDCPA doesn't apply to original creditors. However, some states have laws similar to the FDCPA that apply to original creditors. You might be protected under such a law.
What happens if you ignore a debt collector?
Ignoring a debt collector doesn’t make them go away or stop contacting you. You can still expect phone calls, letters, or emails about the debt. And if the debt collector decides to take things further, they could sue you in civil court to force you to pay.
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