Can Sold Debt Still Be Collected?

Social media often claims that once a credit card balance is sold to a third-party collector, it can no longer be enforced. In this Credit Corner episode, Ellen Falbo addresses that claim directly and explains why it is inaccurate.

Ellen outlines how lenders disclose data-sharing practices through required privacy policies and why debt buyers only purchase accounts they believe they can legally collect. She also explains how opt-out provisions work, where they apply and where they do not. The takeaway is straightforward: selling a debt does not erase the obligation or make it invalid.

...[more]

Transcription

More in this series

• The most common reason credit scores drop
  Andrew, a Possible member since 2021, is looking for a straight answer about what most often causes credit scores to fall. Ellen Falbo, Chief Credit Officer at Possible, names the single event that hurts scores the most and explains the life situation that usually triggers it.
  1:14

• How to plan for your future and get out of debt in midlife
  Tiandra, a Possible member since 2024, asks Ellen Falbo, Chief Credit Officer at Possible, where a middle-aged woman should even start when it comes to getting out of debt. Ellen gets it. She offers a starting point that goes against what most of us were taught: put yourself first, before the debt.
  1:47

• Why Your Credit Score Varies by Bureau
  Felycia wants to know why her credit reports never seem to match up. Ellen Falbo, Chief Credit Officer at Possible, explains how reporting delays, different scoring models and incomplete credit bureau data create those gaps. She also shares how Possible uses real-time cash flow data for a more current picture.
  1:35

• How Many Trade Lines Do You Actually Need?
  Sharon wants to know how many credit accounts a person should carry. Ellen Falbo, Chief Credit Officer at Possible, shares the number she personally keeps on her own reports and explains why intentional credit use matters more than volume.
  1:12

• Why Credit Drops Fast But Builds Slowly
  Lisa asks why one missed payment can destroy her credit score while months of on-time payments barely move it. Ellen Falbo, Chief Credit Officer at Possible, explains the predictive logic behind the imbalance and what it takes to prove a missed bill was a one-time event.
  1:20

• Why Paying Off a Loan Can Drop Your Credit Score
  Shannen paid off her car loan and watched her credit score dip. Ellen Falbo, Chief Credit Officer at Possible, explains why closing a trade line can trigger a temporary drop and how long it typically takes to rebound.
  1:18

• Financial Literacy Class: Credit scores, budgets, and how to use both
  Your credit score affects more than your ability to borrow money. It can shape your housing options, career prospects, and insurance rates. This session, led by CCO Ellen Falbo at our Full-Court Finance event, covers the credit ecosystem and three practical budgeting methods, with real numbers and concrete examples to help you take control of your finances.
  38:17

• What Credit Score Do You Need to Buy a Car?
  Damion is trying to finance a vehicle and wants to know what number to aim for. Ellen Falbo, Chief Credit Officer at Possible, breaks down the specific thresholds that matter, from smooth approval to tighter terms to alternative options.
  1:28

• The Best Credit Habit You Can Build
  Ellen shares the single most impactful credit habit you can develop, plus practical techniques to make it stick.
  2:11

• How to Start Saving for Retirement
  Retirement savings can often feel out of reach. Ellen shares one habit that makes it manageable.
  1:54

• Credit Tips for College Students
  One credit card, used responsibly. Ellen shares the habit that sets college students up for long-term credit success.
  0:58

• How do you start a budget?
  Budgeting can feel overwhelming, but the first step is simple: look at where your money’s actually been going.
  1:25

• When’s the best time to pay your credit card bill?
  Paying your credit card bill on time is key, but timing can impact credit bureau reporting. Our Chief Credit Officer, Ellen explains when it’s best to pay: before or by the due date.
  1:23

• Counter Offers Explained: We’ll Get You The Most We Can
  Ellen explains how Possible determines your loan amount—and how every offer is designed to get you the most we can while keeping your budget in mind.
  1:59

• Why Possible Keeps Loan Amounts Manageable
  Possible CCO, Ellen Falbo, explains why Possible doesn’t offer larger loan amounts—and how our goal is keeping borrowing safe, affordable, and stress-free.
  1:27

• How Possible Decides Who Qualifies for a Loan
  Our CCO, Ellen explains how Possible decides who gets approved for a loan—and how income, spending patterns, and real-time cash flow help make every decision fair and responsible.
  1:48

• How to Fix Your Credit
  There’s no quick fix for your credit, but time and consistent payments can help you build lasting stability.
  1:14

• What You Can Actually Dispute on Your Credit Report
  Kari from Central Florida asks a common question: what can you really dispute on your credit report? Ellen breaks down what the credit bureaus must fix, what counts as incorrect information and why disputing valid info can work against you.
  1:31

• How to Rebuild Your Credit After a Score Drop
  Ellen breaks down practical ways to rebuild credit after a setback. Here’s what helps improve your score over time when progress feels slow.
  2:06

• How to Spot Credit Repair Scams
  Ellen explains why most credit repair services do more harm than good and how to recognize common red flags before they cost you money or damage your credit.
  1:13

• Can You Get a Loan or Credit Card With Bad Credit?
  Ellen explains how people with lower credit scores can still qualify for credit cards or loans and which options are worth considering.
  1:31

• Overwhelmed by Debt? Here Are Your Options
  Feeling stuck under debt doesn’t mean there’s only one way out. In this video, Possible’s Chief Credit Officer, Ellen Falbo, breaks down four common debt-relief strategies—when they make sense, who they’re for, and how to decide what works for your situation.
  2:24

• Debt Consolidation vs. Bankruptcy
  Rebuilding credit often means weighing serious tradeoffs. In this Credit Corner episode, Possible Chief Credit Officer Ellen Falbo explains how debt consolidation compares to bankruptcy, including how each option affects credit, access to loans and short-term financial flexibility.
  1:40

• Are Debt Consolidation Loans Worth It?
  Debt consolidation loans can simplify repayment and support credit growth, but only in the right circumstances. In this Credit Corner episode, Possible Chief Credit Officer Ellen Falbo explains when consolidation can help, when it can be costly and what to evaluate before taking one out.
  2:37

• How to Use Credit Cards the Right Way
  Credit cards aren’t the enemy—used wisely, they’re one of the safest tools in your wallet. Our Chief Credit Officer, Ellen Falbo, explains how.
  1:30

• What to Know About Debt Relief Companies
  Debt relief companies can be expensive. Ellen shares a smarter way to manage your debt.
  1:05

• How to Save for Holiday Spending Without Going Into Debt
  The smartest way to give during the holidays? Save ahead—before you borrow. Our Chief Credit Officer, Ellen Falbo, explains how to budget for holiday gifting.
  1:14

• Smart Strategies for Paying Down Debt on a Budget
  Paying down debt and saving on a fixed income is possible with the right plan in place. Chief Credit Officer Ellen Falbo explains how to do it.
  2:36

• Simple Ways to Build Credit Without Taking on Debt
  Even if you’re credit invisible, there are plenty of ways to start building your credit history. Chief Credit Officer Ellen Falbo explains how.
  0:50

• Why Reading the Fine Print Could Save You Big Money
  The fine print can make all the difference—Chief Credit Officer Ellen Falbo shows why it’s worth a closer look.
  0:44

• Why You Are Bigger Than Your Credit Score
  A credit score is just one small part of your financial story, not a reflection of who you are. What matters is building the future you want, starting today.
  1:05

• What to Know About Starting Your Credit Journey
  Starting your credit journey is a big milestone, but it’s easier to get on track than you think.
  1:05

• Three Smart Moves to Start Building Your Credit History
  Building a strong credit history takes time—but a few smart moves now can set you up for future success.
  0:54

• Why Not Everyone Has a Credit Score—and How to Get One
  Not everyone starts with a credit score—but building one is easier than you might think.
  0:34

• What to Do When You Can’t Afford Student Loans
  Ignoring your student loans won’t make them disappear—Chief Credit Officer Ellen Falbo explains what to do instead.
  0:33

• Credit Cards Aren’t a Substitute for a Savings Account
  Your dungeon master might be great at campaigns—but not at giving savings advice. Chief Credit Officer Ellen Falbo breaks it down.
  1:02

• Paying Interest to Build Credit History? Here’s a Better Way
  Letting your credit card rack up interest won’t boost your credit—it just drains your wallet. Chief Credit Officer Ellen Falbo explains.
  0:45

• Does Carrying a Credit Card Balance Help?
  Carrying a balance won’t help your credit—it’ll just cost you money. Chief Credit Officer Ellen Falbo explains why.
  0:27

• Can You Borrow a Down Payment? Reasons Why That’s a No
  No, you can’t use loans for a down payment on a house. Chief Credit Officer Ellen Falbo tells you why.
  0:48

• Should You Skip Your 401(k) Contributions?
  Skipping your 401(k) means leaving free money on the table—here’s why Possible’s Chief Credit Officer, Ellen Falbo, says don’t do it.
  1:21

• You Are Not Your Credit Score
  A low credit score doesn’t define you—and it doesn’t get to decide your future either. Chief Credit Officer, Ellen Falbo, breaks it down in this episode of the Credit Corner.
  1:05

• 4 Easy Ways to Check In on Your Money Right Now
  Quick financial check-ins today can set you up for a stronger tomorrow. Here are four things you can do to stay on top of your money.
  1:29