Collection Actions: 5.2.2 Misapplication of Payments
Particularly when a debt is sold and resold, or when a creditor has hired multiple collection agencies to collect the same debt, consumer payments to these various entities may not all be properly credited, resulting in the collector claiming an excessive amount owed or seeking collection on a debt already paid in full.46 This can happen when a consumer makes a payment to the original creditor after the debt buyer has purchased the account.47 In fact, the debt buyer may have no system in place to ac