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How long can a collection agency collect?
Collections agency typically are given a year or more to collect on any account before it is sent on to another agency by the creditor. Some creditors use individual agencies …exclusively and do not continue to forward accounts. By federal law, activity to secure paymant against a debt may continue for seven years from the date of last payment. In the event the debt has not been paid in full, the creditor may seek judgment against the debtor. In this event, judgment extends the time to ten years from the date of the judgment. If the creditor is unable to satisfy the judgment in ten years, they may petition the court for an additional ten years. Effectively, debt collections activity, if planned right can extend for twenty-seven years. ---------------------------------------------------------------------------------------- Every state has its own Statute of Limitations. For example, a written contract can have a Statute of Limitations of 3-15 years, depending on the state. ( Full Answer )