Can a collection agency take you to court?
Collection agencies are simply collectors, and in that capacity, act as agents for the original creditors. An outside collection agency does not have the power to sue or instigate legal action of its own accord and without the permission of the original creditor. However, if the account is sold to a third party collector, and a settlement is not made, that agency can refer it to an attorney for legal action because it has become the owner of the debt and can therefore enforce it. In some states, only an attorney may represent a corporation in court, but as stated below, that rule may not apply with respect to claims of all sizes.
The underlying basis of the debt, such as a credit card contract, will generally specify the terms of resolving a dispute, usually, suit or arbitration. By signing the underlying contract, the consumer will have agreed to the dispute resolution mechanism stated therein. If the contract does not provide for arbitration (which is often faster, may be cheaper, but some do not think always as fair to the consumer), the consumer does not have to agree to it, and can insist on "being sued".
That said, a "go sue me" attitude is counterproductive. Judicial process should always be a last resort, as it is time consuming, can be costly, and can have more lasting negative credit implications. However, it may be useful as a tactic, because the creditor may think longer and harder about suing than about other means of collection. If he/she/it has to hire a lawyer to file the suit, attorney's fees may be incurred (although you may ultimately be liable for them depending upon the contract terms), court costs will be incurred (same proviso), and/or the creditor may have evidentiary problems in proving a disputed debt. Also, depending upon the size of the debt, a lawyer may be be unwilling to file suit on it because the return on the time investment will be de minimus. Even at that, the rules of small claims court (if the claim is of a size to qualify for that court's jurisdiction) may allow the creditor or new owner of the debt to represent him/her/itself without the need for an attorney.
ADDED: The first response is clear and correct. Do not let a mere "collection agency" bully you with a threat of court action. However - as stated, if the collection agency actually purchased the delinquent account, it became the 'legal' owner of the debt and most certainly can, and do, take the debtor to court (usually Small Claims Court) to collect on its investment. It is up to the judge/hearing officer as to whether the case is sent to mediation where an impartial third party tries to assist the parties in reaching their own settlement of the dispute. If a settlement is not reached, the parties return to court for trial, and one side wins and the other side loses.
The long and the short of it is that if you owe the money, you'd better make a good faith effort to pay your 'just' debt.
The Statue Of Limitations is and affirmative defense (ie: you have to show up or file an answer stating that as your defense), and it is only tolled (ie: starts ticking again) if there is a payment made or a note signed affirming the debt. An acknowledgment will not toll the statue in most if not all states. Yes they can file a lawsuit against you if the debt is assigned.
PS: I find it almost comical how people find advice concerning lawsuits on what a collection agency can and can not do. I just had a case where a lady brought and argued her case with what appeared to be a print out from a post like the above. Let me give you some sound advice! Pick up the phone call an attorney that is in good standings with the bar association in your state and ask him/her. Because, the lady I'm referring to lost her case on the arguments she printed out and was somewhat embarrassed to find that the Judge was less that cooperative with her new found faulty knowledge!
Absolutely they can ! The only reason a person needs to deal with a collection agency, is because they defaulted on payments to the original company. That company passed the account to a debt-recovery agency, who paid the sum YOU owe to the original company. If you simply refuse to pay the collection agency, they have the legal right to take you to court to recover the debt !
A business can't garnish over another business, but if they hire a commercial collection agency to collect the debt, even then the agency can't garnish. When a business debt collection service goes to Court, the commercial debt collection agency can arrange a settlement to "force" the Court to garnish over the debtor. Collection Laws varies in every state
It is not going to happen. There is a process that these companies follow. They would first put it into collections, then sell it to a collection agency. That is way to low for even a collection agency to take you to court. The original creditor will just write it off. You have nothing to worry about unless you get a summons to go to court, which I gurantee that will not happen.
A Collection Agency that "owns your debt" can not garnish any wages. Assume that the collection agency in their efforts to collect the debt for their client, sues the debtor and then provoke that the Court works an arrangement to pay the debt, if the arrangement includes garnishment of wages then, the Court can garnish salaries. And there is laws to garnish wages that apply to every state.
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 procedures. Actually…
Can a collection agency attorney press charges against you from another state and threaten to take you to court?
Once a debt is given to a collection agency can you get the creditor to take it out of the creditor's hands?
Once a debt has been sold to a collection agency, that agency owns the debt. Now it would be between you and the collection agency to settle the debt; the creditor has washed his hands of the matter. If you think the debt collection agency isn't working within its legal limits and is harrassing you, check out the Fair Debt Collection Act, which outlines was a collection agency can and cannot do.
You can take a creditor or a listed party on a credit report to court for not removing notice on your report if, that account is paid off, seven (or ten in the event of a judgment) years has elapsed from the date of last payment, and thirty days have passed since you requested the account be pulled in writing, by registered mail. All three of these must occur before you should take any creditor…
As a matter of law, no. The exception is in cases where a Federal Law is in effect and supersedes a local law. For example if you are sued by a collection agency and the agency violates the Fair Debt Collection Practices act, you could bring that to the attention of the court and absent any other laws, the court could rule in your favor.
If a judgment has been made against a debtor and the debt is turned over to a collection agency is the agency able to garnish wages without taking the debtor to court?
If a judgment is in place the judgment holder can execute it under the provisions of the law of the debtor's state. It would not be necessary for the creditor to transfer the debt to a collection agency. That being said, a judgment is not transferrable, so if the original judgment holder did not record the judgment and take action they could not simply "pass it on" to another collector unless that collection agency was…
How do you satisfy an unsatisfied judgment after another collection agency bought the account from the first collection agency that originated the judgment?
Can a 9 year old debt be garnished by a collection company if you filed chapter 13 9 years ago and paid that same debt?
The answer is: Legally no...but! If you do note take specific steps to inform the collection agency that the debt was discharged in bankruptcy, they will move forward as if the debt is valid and can actually obtain a court judgment against you entitling them to collect. For example, if the collection agency sends you a letter saying you owe such and such and you choose to ignore them. Then they can rightfully assuming that…
No, almost definitely not. What they can do is take you to court and win a judgment against you. If that judgment isn't satisfied, they can obtain a court order to garnish your wages. What they can't do is threaten you with jail or putting a lien on your home. Know your rights. Check out the Fair Debt Collection Practices Act online.
If being sued from a collection agency can you present to the judge you would like to buy the account at what the collection agency pay for?
You can propose anything in court. The amount the collection agency is suing for may or may not include excessive fees and interest. If your position is well-argued, you may do well. However, if it is not...you will always suffer the consequences. Remember, you will be the only one in court that day that doesn't know what you are doing. Everyone else does it, every day, for their job. If it is a considerable amount…
according to my lawyer, there is only a slight chance they take anyone to court for non-payment at a payday loan store b/c of how much it will cost them to file and so forth before they finally can get the money from you whether in payments from court order or court ordered to deduct out of your paycheck from your employer, and laws have limited this as well to only take a certain %…
A collection agency can only touch a bank account if you either give them permission or they have a court order. In order to get a court order they have to go through the full legal process including trial. The Student Loan on the other hand, like the IRS, does not have to go through the legal process.
Yes, a creditor/collection agency must obtain a writ of judgment from the civil court in the state where the debtor resides before any action can be taken against the debtor's property. The debtor will receive a final notice of judgment and be given a specified time to claim all exempted property from judgment action.
I have a medical bill for 168.00 that was sent to a collection agency after I made a payment. They are going to keep in the collection agency until my bill is paid off. This can not be right.?
a collection agency will usually take up to 30% off a debt but only if it is over $500 i once owed $5,300 on a returned vehicle and they were willing to take $3,100 but you can hustle your amount owed. all they want is some of the money anyway. There is no specific set amount. You must negotiate with the collection agency. They will settle for whatever they can get in many circumstances.
What may happen is the court will give the "Creditor" the ruling to Garnish Wages. Its a good idea to WRITE a letter to the creditor or Collection agency and see if you can reduce what you owe. You can negotiate a lower payment. Make sure you can afford that payment. What may happen is the court will give the "Creditor" the ruling to Garnish Wages. Its a good idea to WRITE a letter to…