If a charge is sent to a collection agency what happens if you dont pay it?
2007-11-23 09:01:53 · 14 answers · asked by Sierra 1 in Business & Finance ➔ Credit
What kind of charge is it and how much? If it is a doctor's bill or a bill for professional services, then they are going to hit your CR if you don't pay. Bad stuff to have go to collection are CC bills, power and light bills, and the like. If it is a large bill that you plan on not paying, you may need better legal advice than on Yahoo.
2007-11-23 09:07:12 · answer #1 · answered by B 3 · 0⤊ 0⤋
They will have more control over your life that what it's worth, for not to paying the charge.
I was involved with a collection agency, because a company sent an item from a friend and there was no indication who it was from on the box, in or out. After making arrangements to send it back after receiving the return paper work, found out a week later who sent it, it didn't go back. Before the company received the item back, issued credit to his charge account, but when I called couldn't give me any information, then because I hadn't returned it, sent the account to collection for payment in my name not the friend that had done business with this company. It took me almost a month to correct the problem that I had not created. Alot of the problem was do to the fact I didn't understand the person at the collection agency, nor could she understand what I was trying to correct.
2007-11-23 09:54:56 · answer #2 · answered by Anonymous · 0⤊ 0⤋
I worked for a collection agency for 10 years. Rarely do colletion agencies sue a person, I do not care what anyone says. You can write them a letter send it certified mail requesting them not to call you and that is your right. Also, the credit card company will place a charge off on your credit report. The collection agency cannot report you if the credit card company has already done so. Look up the Fair Debts Collection Practices Act.
2007-11-24 09:51:55 · answer #3 · answered by joliewallace 1 · 1⤊ 1⤋
Talk to the credit collection agency and find out about the loan. If the loan is legitimate, pay it, or negotiate a settlement. Collection agencies work with debt that isn't always reported to a credit bureau unless/until the collection company determines that it's uncollectable. Examples are medical debt and utility debt.
2016-05-25 03:25:34 · answer #4 · answered by catarina 3 · 0⤊ 0⤋
Depends on where you live and what your state laws are. Can vary from place to place. In Texas they will spend up to 4 years harassing you on the phone. And at any time they can decide to sue you for the amount plus extra charges for attorneys, and court costs. Assuming they win they can possible put a lien on your house, or attach your bank account. If they don't sue you, they can sell your account to someone else and that company will harass you. That can go on forever. It if is a small amount they probably will give up at some time and just put a blurp on your credit report.
In some states, even if they sue you and win,....they can do nothing to collect. You will just have a judgment against you.
2007-11-23 09:42:13 · answer #5 · answered by Lyn B 6 · 0⤊ 0⤋
Depends on the agency.There are 2 kinds to my knowledge. One buys accounts from creditor for pennies-on-the-dollar, than goes after you for full amount. The other takes accounts on consignment(usually for a period of 6mos) and attempts to collect. The latter has no authority whatsoever to sue,garnish wages,or place judgement on credit,no matter how much they threaten to do so. Usually the worst that can happen is a negative mark on your credit score. Usually,neither creditor nor agency will take legal action unless you owe a considerable amount of cash- Ex.(5 figures)-and they have good chance of recouping debt through legal action.
2007-11-23 09:12:50 · answer #6 · answered by frankybars 1 · 0⤊ 0⤋
You will have a bad mark on your credit report for not paying your bill on time, and it will also show that the account went to a collection agency. That entry on your credit report will stay there for 8-10 years.
2007-11-23 09:14:58 · answer #7 · answered by annazzz1966 6 · 0⤊ 1⤋
u should pay it. i had a credit card with a 250 limit that my x messed up by the time the collection agency got their money and all the late fees for the card i paid 5000 for a card that was only 250 to start.
2007-11-23 09:24:16 · answer #8 · answered by cajunbaby 6 · 0⤊ 0⤋
More charges keep getting added and your credit rating is ruined for at least 7 years. These agencies accept weekly payments so it is in your best interests to action them.
2007-11-23 09:05:46 · answer #9 · answered by Anonymous · 0⤊ 0⤋
depends on the amount....it will definently affect your credit report, but if it is under $500, it is highly unlikely that they will try any legal means....as attorneys and court fees are not worth the amount owed. But they will harass you forever...if you owe it, pay it....they will usually settle it for sometimes half the amount.
2007-11-23 09:11:05 · answer #10 · answered by Anonymous · 0⤊ 0⤋