Asked in Debt and Bankruptcy
Can a debt collector threaten to sue and give a 24 hour period to respond in order to negotiate?
A collection agency will say or do anything to get you to pay. They will harass you, your family, and your co-workers. It doesn't matter whether you actually owe the debt or not as far as they are concerned.
Many people will pay bills when they are not really liable just to get them to stop. That is why they continue their often illegal tactics.
It would be very unusual for them to sue over 1200. However the negative report will stay on your credit for seven years. If you do decide to pay try to get a written agreement that they will remove any negative report.