Debt Collection

How Does the Collection Agency Collect Debts?

If you have a lot of credit card debt or other debt that has gotten out of control, and you find yourself unable to continue with the monthly payments, you probably know that one of the foremost questions in the debtor’s mind is “What can the collection agency/debt collector do to me to collect the debt?”

In most cases they will simply continue to communicate with you to make a demand for payment. While you may feel that it is harrassment, they have a legal right to do that until the debt expires.

If you don’t continue to make payments on the credit card debt, the creditor or their debt collector can sue you to collect it. This rarely happens–only in about 1 in 10-12 cases. If they win, the court will enter a judgment against you. If you do not go to court, they will get what is called a default judgment. The judgment states the amount of money you owe, and offers the creditor or collector a few different options to get their money.

If a debt collector has used unfair debt collection practices, you have the right to sue them in a state or federal court within one year from the date a law was violated.