What does return to original creditor mean?

Question

I got a letter from LTD Financial Services, L.P. dunning me for an account from Compass Bank. I replied and offered to pay a certain amount (about 10%) of the total amount, and asked them to reply to my offer in writing.

Someone called about a week later acting like they had not received the letter. When I pressed them on it, she said they wouldn't even acknowledge it, because the offer was so low. I got into an argument with her about wanting them to reply to me in writing and not on the phone. She wound up hanging up on me.

I wrote a complaint to their email address on the letter saying that I had wanted them to correspond with me in writing, but I could see that they didn't want to. I complained about the disrespectful and sarcastic way their employees had treated us. I then told them I wanted them to stop all contact with me according to the FTC requirement. I included in the email the text of the letter saying the same thing that I mailed to them this morning.

I went to the FTC website and filed a complaint.

This morning I got an email from LTD saying they had closed my account and returned it to the original creditor. I can't say I expected that. Any idea what that means?

Jim · Accepted Answer

LTD sounds like a debt collection company which was hired by your original creditor (Compass Bank). If they can't make money off of you, then can close your account and return the delinquency back to Compass Bank who may in turn sell it to another debt collection company in order to collect on that debt. Debt collection agencies aren't very consumer-friendly and their employees are sometimes paid by commission so they'd have no incentive to lower the amount you owe. If Compass Bank receives the delinquent account back, it'd probably be a better idea to try and negotiate with them for a lower amount.

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What does return to original creditor mean?

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