My debt was sold to a collector
Sometimes a lender sells a debt to a collection company, who then becomes the one chasing you. It can feel unsettling, but your basic position is similar.
This guide helps you
- Understand what it means when a debt is sold
- Know what to check when a new company takes over
- Avoid paying the wrong party or amount
- Find free help to deal with the new owner
6 min read
What's happening
Lenders sometimes sell unpaid debts to collection companies. When this happens, the buyer usually becomes the new owner of the debt and the one you deal with. The debt itself is generally the same — but you should confirm the details with the new company.
It can be surprising to hear from a company you've never dealt with, so checking is sensible.
Your first steps
Confirm the handover before you pay anyone:
- Ask the new company for proof they now own the debt.
- Check the original creditor and amount match your records.
- Make sure you don't pay the old creditor and the new one for the same debt.
Request the details in writing so you have a clear record.
Step by step
- Confirm the new owner and ask for written confirmation of the transfer.
- Check the amount — it shouldn't suddenly jump without explanation.
- Verify it's the same debt you recognise, not a duplicate.
- Update your records to reflect who to deal with now.
- Get advice if anything is unclear or the amount looks wrong.
Your rights
You're entitled to confirmation that the new company owns the debt and to the same protections against unfair conduct. Time limits and other rules still apply but vary by state and situation, so check rather than assume. Look up terms like 'assignment' in our glossary.
Where to get free help
If a sold debt is causing confusion, free advice can help you sort out who to pay and how much. Call the National Debt Helpline on 1800 007 007, or read more in our help centre.
Key takeaways
- A sold debt usually has a new owner who becomes your point of contact.
- Ask for written confirmation that the new company owns the debt.
- Check the amount hasn't jumped and you're not paying twice.
- Free advice is available on 1800 007 007.
Frequently asked questions
Can my debt really be sold to another company?
Yes, lenders sometimes sell unpaid debts. The buyer usually becomes the new owner. Ask for written confirmation of the transfer.
Do I owe more now that it's been sold?
The debt is generally the same, though fees may apply. If the amount has jumped, ask for a breakdown and seek advice.
How do I avoid paying the wrong company?
Confirm who owns the debt now in writing, update your records, and make sure you're not being chased by two parties for the same debt.
This is general information, not legal or financial advice. Your situation is unique and rules can vary by state and over time — for advice on your circumstances, speak to a free financial counsellor (National Debt Helpline 1800 007 007) or get legal help.
Know your options, know your rights
A free, plain-English guide to dealing with debt in Australia — and the people who can help.