Question about collection agency in Wisconsin.?

Question

This is in Wisconsin.

My brother was involved in a car accident a few months ago. Neither he nor the other driver got a ticket. No injuries, minor damage to both vehicles. Other driver claims my brother was at fault (my brother claims the opposite) and has come to our house several times to talk to him. My brother was never home, however.

Today my brother received a bill from a collection agency, with the other driver named as the person being owed the money. I'm wondering about the legalities of this. My brother never received any legal-related communications--that is, no judgement against him, no contact from a lawyer. Can an individual like this other driver simply go out and hire a collection agency to try to get the money he claims he is owed for the damage to his car? Should my brother dispute this in any particular way? What would happen if he didn't dispute? That is, what could the agency do in its attempts to get the money?

I forgot to mention this originally... my brother doesn't have car insurance, which is really stupid of him but it is what it is. The other driver does have insurance. Not sure if that makes any difference.

Answer 1

You cant collect a debt that has no legal basis. If your brother was found liable in a court judgement than he would have to pay. If your brother has car insurance, he needs to turn it over to them. He needs to contact the collection agency to get all the details so he knows why this is happening.

Answer 2

Did your brother notify his insurance company about the accident? Start by contacting them concerning this claim for repairs. The insurance company should have either paid or made a determination as to who is at fault. Get something in writing from the insurance company.

And no the other driver cannot just hire a collection agent to collect. At a minimum he would have to sue and win a judgment.

I think I'd be tempted to send the collection agent a bill for my car damages or maybe contact the other guys insurance company asking for repairs.

Answer 3

Have him send a letter requesting validation of the alleged debt to the collection agency. Do an Internet search for Debt Validation letters and you should find several example. However I suggest he not use one with a form to fill out and the best thing to do is to take the basic intent of the letter and reword it so that it doesn't look like a form letter.

If he did not enter into a written agreement of some sort with the other driver then I don't see how they could prove he owes them any money.