What is the difference between a debt collector and a creditor?

The difference between a debt collector and a creditor can be found in the roles they play in regards to consumer debt defense law in Virginia. A debt collector is a company or individual responsible for collecting payments on behalf of a creditor. Creditors are the original lenders and owners of the debt. When a consumer fails to make timely payments on a debt, creditors have the right to contact the debt holder directly and ask for payment. However, if the debt remains unpaid, the creditor may choose to hire a debt collector to represent their interests and pursue the debt. The debt collector will then contact the consumer and attempt to collect the debt on behalf of the creditor. In contrast, a creditor is the original lender of a debt. They have the right to file a lawsuit against the consumer, in order to recover the debt, or sell the debt to a debt collector. In either case, the creditor retains ownership of the debt. In terms of consumer debt defense law in Virginia, creditors and debt collectors have different responsibilities when it comes to collection of debts. For example, debt collectors are obligated to follow certain legal procedures when contacting a consumer and cannot use unfair or deceptive practices when collecting a debt. On the other hand, creditors have the right to file a lawsuit and are not bound by those same restrictions.

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What is the difference between a debt collector and a creditor?

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