My debt was sold to a collection agency — what changes?

Last updated: 2026-07-11 · Educational content; not legal advice.

Short answer

Your rights do not shrink. When a creditor sells or assigns your debt (Civil Code, Articles 1624–1626), the buyer merely steps into the original creditor's shoes and can collect only what was actually owed — you keep every defense you had against the original lender: payment, prescription, a wrong amount, or an illegal/undisclosed charge. Until you are properly notified of the assignment, paying the original creditor still discharges you (Article 1626). The agency remains fully bound by SEC Memorandum Circular 18 (2019); for credit cards, the issuer must notify you in writing before endorsing your account to a collector (RA 10870). If your debt was already the subject of a lawsuit, you may even extinguish it by reimbursing the assignee the price it actually paid for it (Article 1634).

Primary sources

Frequently asked

Do I owe the collection agency more than the original balance?

No. An assignee cannot collect more than the assignor could have — the same principal, disclosed interest, and validly stipulated penalties, minus everything you already paid. Undisclosed or invented add-ons remain unenforceable regardless of who now holds the debt.

I was never told my debt was sold — is the agency's demand valid?

Ask for proof of the assignment. Under Article 1626, if you pay the original creditor before being notified of the assignment, you are released. Demand written proof that the agency actually owns the debt before paying anyone.

The agency is nastier than the original lender — is that allowed?

No. A third-party collector is bound by the exact same SEC MC 18 rules — no third-party contact, no threats, no obscene language, no calls before 6 a.m. or after 10 p.m. Selling the debt does not switch off your protections.