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There are costs associated with bringing a civil lawsuit and collection agencies want to be sure of the following:
* There is a good chance that the collection agency will win
* The amount of money is significant - not small claims
* All attempts to collect (legally via FDCPA) have been met with a lack of payment
If the collection agency has one or more attorneys on staff, they will be more likely to pursue borrowers in court as the expense to do so is lower with in-house counsel vs. retained counsel.
Wiki User
∙ 13y ago
Collection agencies typically decide to sue borrowers as a last resort, when other attempts to collect debt have been unsuccessful. They consider factors such as the amount of debt owed, the borrower's ability to repay, and the likelihood of successfully recovering the debt through legal action. In some cases, they may also consider the age of the debt and the potential costs associated with litigation.
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How long can a debt collection agency sue you in Ohio?
In Ohio, the statute of limitations for debt collection lawsuits is six years for most types of debts. After this time period has passed, the debt collector cannot legally sue you to collect the debt.
Can a collection agency who says they are with a law office sue you if they purchased your debt three years ago from the original creditor in Arizona?
Yes, a collection agency that has purchased your debt can sue you for the outstanding balance, even if it has been three years since they acquired the debt. However, the statute of limitations for debt collection in Arizona is 6 years, so they have up to 6 years to take legal action against you. It is important to seek legal advice and understand your rights in this situation.
I have retained a law firm to sue a collection agency. Do I still have to answser the Judgment?
Yes, if you have been sued by a collection agency, you are still required to respond to the lawsuit by filing an answer or other formal response with the court. Failure to do so could result in a default judgment being entered against you. It's important to follow the legal process and comply with court requirements even if you have retained a law firm to represent you.
Can you sue a collection agency who continues to report a debt as a debt in collection even though it was discharged in chapter 7 four years ago?
Yes, you may have grounds to sue the collection agency for violating the Fair Credit Reporting Act if they are reporting a debt that was discharged in a Chapter 7 bankruptcy. You should seek advice from a consumer rights attorney to explore your legal options and potentially take action against the collection agency.
Can you sue collections company if they keep calling when al bills have been paid?
Yes, you can sue a collections company if they continue to contact you after all debts have been settled. This behavior may violate the Fair Debt Collection Practices Act. It is recommended to document all communication attempts and seek legal advice.
Can collection agencys put a lien on property for unseccured debt?
Yes, collection agencies can do this. However, first they need to sue the borrowers and obtain a judgment from the court against the general assets of the defendants. Usually, a judgment will become a lien on any real estate property the borrowers own. If the collection agency does not go to court to sue for a judgment, however, it can not place a lien on a home. And not all states or counties may allow judgments to be attached as liens, although many do allow this process.
Can collection agencies sue you in Canada for your credit card bebts in us?
no
Can an out of state debt collector sue you?
Yes, an out of state debt collector can sue you. Many debt collection agencies collect for companies located all over the country.
Can a collection agency freeze my bank account?
They can't freeze the account initially. First, they must try to collect the debt from you. Then, they can sue you if you do not pay. If they win a judgment against you, they can freeze the bank account. Sometimes collection agencies sue people for debt that is not their or that is past the statute of limitations. Learn your rights by reading up on the FDCPA.
My credit report shows a delinquent account from 2005 a collection agency is listing it now reported as of 6 2009 is that legal?
No it is called re-aging which is federal violation, collection agencies do this to refresh the SOL so they have legal recourse to sue you for the debt.
What are your rights against bill collector callers who do not identify themselves hang up and threaten to sue?
Collection agencies are governed by federal and state laws. Debtors are given protection under the Federal FDCPA. A collection agency cannot "threaten" you with anything. They can inform you that your account may be referred to a collection attorney and legal action may be initated. Please familarize yourself with the laws pertaining to collection agencies. Be advised, that some of the laws do not apply to the original creditor.
Can debt collection agencies sue in North Carolina?
This is a misnomer. When an account is sent to debt collections, the collection agency does not typically own it. They are simply acting on the part of the lender or creditor. When judgment is sought on a bad debt, it is the lender who is suing. They are perhaps doing so through the collection agency and the lawyer they have under contract, but it is not the collection agency who is suing.
What can collection agencies do if you really cannot pay them because you do not have the money?
Sue you, and if they win they can take whatever property isn't exempted. Also they can garnish wages and sometimes bank accounts. what is exempt property?
Can you sue a collection agency if they are not licensed in your state?
No you can not
Can collection agency sue a married person?
Yes.
Can a collection agency sue you if you live in Tennessee?
Yes.
I have retained a law firm to sue a collection agency. Do I still have to answser the Judgment?
Yes, if you have been sued by a collection agency, you are still required to respond to the lawsuit by filing an answer or other formal response with the court. Failure to do so could result in a default judgment being entered against you. It's important to follow the legal process and comply with court requirements even if you have retained a law firm to represent you.
