0
If the person has made an agreement to render payment and then defaults, the agency will probably initiate legal proceedings. The majority of CA's are not attorney's and therefore cannot themselves enter into litigation. They usually refer the account to a collection attorney who will then file a lawsuit against the debtor. The lawsuit must be filed in the debtor's state of residency and the state statutes will apply to all legal procedures. There are however collection agencies/law firms who now have the ability to file for arbirtration, the debtor/consumer should be very cautious in either case and if possible seek legal counsel. If the agency feels the debtor is "judgment proof" they may return the account to the original creditor who will then decide to resubmit for collection or close the account as uncollectible debt. macky83@juno.com
Wiki User
∙ 19y ago
Add your answer:
Earn +20 pts
If you owe a company money and it is placed in collections can you pay the original company or do u have to pay the collection agencies?
You have to pay the collection agency. The original company has a signed contract with the collection agency and they pay the collection agency a % of what they collect from you. That's how they make their $$. The original company did not want to have the outstanding balance on their books.
Can a collection agency garnish your pay check?
No a collection aggency cannot garnish a pay cheque
If you pay a collection agency does the collection come off of your credit report?
Yes you tell the collection agency you will pay ONLY if they can give you a letter that say they will delete the item from your report it's call pay for deletion
What happens for non payment of credit card FAQ?
if you dont pay your credit card bill, they will charge you the amount that you didn't pay plus interest on your next bill. If you wait too long to pay your bill, they might hire a collection agency to get the money back or reposses your things
Does the creditor or the collection agency get the money you pay on a debt?
When a collection agency takes on a bad debt, in many cases they are "puchasing" the debt from the original creditor. When you then pay off the collection agency, your money will stay with that collection agency. This is the most common scenario, but some companies do have their own internal collection agencies (Capital One, for example, has their own collection subsidiary in Idaho - the Westmoreland Agency). Hope this helps!
What happens if you do not pay a collection agency?
if a collection agency isn't paid, the debt can be put on a persons credit report. The collection agency can also choose to garnish a persons paycheck.
What happens when you dont pay off small loans?
Most of the time it will be sent to a collection agency. This agency will then continue to try to contact you until the loan is paid. Your interest rates are even likely to increase, causing you to pay more than you would normally owe.
What happens if a collection agency gets sued?
They must respond and send a representative to the hearing. If they lose, they have to pay.
What if you dont pay a doctors bill?
they will send it to crediotrs and then a collection agency will call you.. your creidt score will go down
If you owe a company money and it is placed in collections can you pay the original company or do u have to pay the collection agencies?
You have to pay the collection agency. The original company has a signed contract with the collection agency and they pay the collection agency a % of what they collect from you. That's how they make their $$. The original company did not want to have the outstanding balance on their books.
What are your options if you are unable to pay the full debt amount to the collection agency?
Do NOT pay any money to a collection agency.......send your money to the debtor, the person you owe it to. Send it in the form of a check or money order. NEVER PAY A COLLECTION AGENCY
You owe 690.00 to a food vendor should you pay a collection agency?
No pay the vendor. If you pay the collection agency they will extract a fee from the payment and you will still owe the vendor
Can a collection agency garnish your pay check?
No a collection aggency cannot garnish a pay cheque
What happens if you dont pay collection agency?
they will stop at nothing including threatening to take your first born child but basically all they can do is sue you and get a judgment and if you have no assets they cannot take them, but if your working you could have your wages attached...
Does a collection agency have to accept what you are willing to pay?
No.
Can your IRS be taken to pay a collection agency?
No.
If you pay a collection agency does the collection come off of your credit report?
Yes you tell the collection agency you will pay ONLY if they can give you a letter that say they will delete the item from your report it's call pay for deletion
