subject: Just What Can A Debt Collector Do To Me If I Don't Pay? [print this page] There seems to be a lot of confusion about what debt collectors have the authority to do. Admittedly, some collection agents might intentionally lie or insinuate that they can do more than they legally can to intimidate debtors. Generally the main factor that will motivate debtors to pay is the persistence of correspondence from the collection agency. If they do not pay, they know that the letters and phone calls will not stop.
Debt collectors do have the capability of negatively marking credit scores which can do a lot of financial damage and stay on the score for seven years. If a debtor is especially resistant and obviously has assets, a third party debt collector will either recommend that the creditor sue them, or if they own the debt themselves, they are entitled to sue themselves.
Contrary to popular belief, collection agencies can't seize a debtor's bank accounts, assets, or garnish wages unless there has been a successful lawsuit already with a judgment against them. They are strictly prohibited from making the debt public. The only entity that they can discuss the debt with is the credit bureaus. They can't get a debtor fired from their job, and if a collector was to threaten violence on a debtor for the purposes of intimidation, they would almost certainly be fired, and perhaps sued.
Again, debtors usually repay their debts to collection agencies to stop the constant contact, but oftentimes, most debtors realize that the debt is legitimate and it is the right thing to do. Perhaps they did not have the money to pay on the delinquent account in the past, but have it now, or maybe the account simply slipped their mind.
In light of the negative stereotypes about collection agents, it is ironic that it is oftentimes the collection agents themselves that enable the debtor to pay off their debt. Collection agents usually have the authority to offer some type of repayment plan or debt reduction plan, or in some cases, both. Because of their two main capabilities, one being the authority to damage your credit score, and two being the authority to make it easier to pay, it is never a good idea to simply ignore a call from the debt collector.
by: Mallory Megan
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