What is the difference between a debt buyer and a debt collector? | The Golden Law Group | Helping Residents & Businesses Get Financial Stability | (813) 413-8700 | https://www.brandonlawyer.com | 808 Oakfield Drive, Ste A, Brandon, Florida 33511 | 9040 Town Center Pkwy, Bradenton, Florida 34202
A debt collector is an entity that collects debts on behalf of another. For instance, if you owe Citibank money and you default on that debt, Citibank will refer that debt to a debt collector. If the debt collector collects money from you, that money will go back to Citibank. However, a debt buyer is a company that purchases defaulted debt from a credit card company such as Citibank. Therefore, if you default on a debt to Citibank or another creditor, and that debt is sold to a debt buyer, the debt buyer is now the actual owner of that debt.