Can a collection agency sue you in court?
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.