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Can a collection agency sue you in court?

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Wiki User
2010-07-27 19:17:30

A collection agency cannot file a lawsuit against a debtor.

The agency can refer the account to a collections attorney who

is licensed to practice in the state where the debtor resides, and

that attorney can file a suit against the debtor.

Some collection attorneys or firms are also licensed to

arbitrate accounts, which means the account is sent to the National

Arbitration Board rather than the use of standard civil lawsuit


Actually - a collection agency CAN sue you in court, IF the

collection agency owns the account. However, you are correct, they

cannot file a lawsuit against a debtor IF they are acting on behalf

of the original debt owner, i.e., Sears, JC Pennys, etc.

Most collection agencies, who actually OWN the debt account,

purchase these things at very small costs ... as the original folks

have written it off their books. Therefore, if they do take you to

court, most likely, it will be small claims court...

Debt collection, inlight of credit cards, etc., is actually a

CIVIL matter and NOT a criminal matter.

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