what happens if you do not go to court?
2007-03-27 15:42:45 · 5 answers · asked by Anonymous in Business & Finance ➔ Credit
I have to agree with Justin
A collection agency does have the right to sue for a debt they own or was assigned to them.
The FDCPA says that they cannot use threats to collect a debt - that would include the threat to sue when they have no intention of actually suing.
Yes they can sue for more money than you had previously owed the original creditor as Justin mentioned.
If you don't go to court they will just get a default judgment against you. What they can do after that, besides having it report on your credit reports, depends on your states exemption statutes - as far as wage garnishment, liens, etc.
If you have an affirmative defense against them, such as the account is past the collecting SOL - use it !!!
Or if you have counterclaims against them, such as - they have violated your rights in their correspondence to you or in the way they have been reporting on your credit reports - it would be in your best interest to file those counterclaims against them.
2007-03-27 16:44:59 · answer #1 · answered by echo 7 · 3⤊ 0⤋
I've been a debt collector for 16 years now. I happen to work in the pre-litigation department for the largest privately owned collection agency in the United States (IC System) http://www.icsystem.com based out of St.Paul, MN. I spend all day calling debtors threatening law-suit. The FDCPA (Fair Debt Collection Practices Act) prohibits a debt collector from threatening any action you do not intend on taking, so threatening action if i didn't intend on taking it would be a BIG no no. Contrary to what the previous "top contributer" is telling you, a collection agency DOES have authorization to take you to court in the process of debt collection, but can not sue or collect any more money than what you originally owe (other than court costs, attorney fees, & costs for the sheriff to serve you papers.) I'm not making this up. I'm also an ACA Certified (http://www.acainternation.org) collector - which is the highest level of certification and training any debt collector can attain. Good luck. Email me if you have more questions!
2007-03-27 22:57:41 · answer #2 · answered by Justin A 1 · 1⤊ 0⤋
A collections agency CANNOT TAKE YOU TO COURT if it is within the US, only the original creditor can take you to court. A collections agency, by law, cannot threaten litigation (but many do anyway) because it is a violation of the FDCPA.
2007-03-27 22:45:41 · answer #3 · answered by Anonymous · 0⤊ 1⤋
Collection agencies have no power and they are shysters of the worst sort. Report them to the phone company, the Attorney General of your State and get on the "No Call " list for whatever State you live in. Do not speak to them and do not pay them anything.
2007-03-27 22:51:12 · answer #4 · answered by Anonymous · 0⤊ 1⤋
get a judgment to pay them..
2007-03-28 12:03:51 · answer #5 · answered by shorty21 5 · 0⤊ 0⤋