A creditor has assigned a debt to a collection agency.As an assignee,the collection agency is not a party to the original contract and is therefore barred under the doctrine of privity from acquiring any rights to own the debt under it.

Question

Quizplus · Accepted Answer

When a creditor assigns a debt to a collection agency, the agency steps into the shoes of the creditor and acquires the rights to collect the debt, despite not being a party to the original contract. This is a common practice in debt collection and is legally permissible.

A Creditor Has Assigned a Debt to a Collection Agency