Debtor Information

Answers To The Most Frequently Asked Questions About Debt Collection

Q. What should I do if contacted by a collection agency?

A. It is important that you respond as soon as possible. If you don’t, the collection agency will keep trying to contact you to collect what they believe is a valid debt. If you legally owe the debt, you should make payment arrangements.

Q. Why can’t I continue making payments to the original creditor to whom I owe money?

A. The original creditor contracts with the collection agency to collect the debt. Once the debt has been placed with a collection agency the collection agency is entitled to receive all payments on the account.

Q. What if the bill was paid or I don’t owe the debt?

A. If you do not owe the bill, or if the bill has already been paid, send the agency a written dispute along with copies of receipts, cancelled checks and any other information to back up your claim. It is important to send your letter and documents within 30 days after your first contact from the collection agency. Once the agency receives your dispute letter, it must stop further attempts to collect the debt until it sends you a written verification to show that you do owe the bill and the amount of the debt is correct.

Q. Can I be sued if I fail to pay the debt?

A. Yes. A civil lawsuit may be filed against you in the county where you reside. If a judgment is obtained, you may also be liable for court cost and attorney fees.

Q. Can a collection agency call me at work?

A. Yes. unless the debt collector knows or has reason to know that your employer prohibits you from receiving such communication and he/she does not have any other address or telephone number to contact you. If you are prohibited from being contacted at work, inform the debt collector in writing, including an address and telephone number where you may be contacted to discuss the account.

Q. Must an agency accept partial payments?

A. No. A collection agency has the choice of demanding the whole amount due or taking payments on the bill. The agency will want to know your actual ability to pay the debt. The agency may establish an amount it is willing to accept and the payment schedule.

Q. As long as I am paying something every month, doesn’t the collection agency have to take my payments?

A. No. The agency’s responsibility is to collect the debts assigned to it. The agency will want an agreed plan so it knows when to expect payment and when the debt is to be paid in full.

Q. What happens to my credit report when I don’t pay a debt?

A. If the debt goes unpaid, a report may be sent to one or all of the three major credit-reporting agencies, to remain on your credit report for seven years from the date of delinquency. If at a later date the debt is paid, partial or in full, your credit report will be updated to reflect the payment.

Disclaimer: Collection laws vary from state to state. This information is not to be construed as legal advice. Legal advice must be tailored to the specific circumstances of each case. Although we attempt to provide up-to-date information, laws and regulations often change. We make no claims, promises, or guarantees about the accuracy or completeness of this information. For legal advice, please consult an attorney.
- Bryce